Global car makers set up purchasing offices in India

The list of global automakers setting up international purchasing offices in India is set to get longer with Koreas Hyundai Motor Corporation and Americas Ford Motor Company planning to set up their own offices soon. “We do not source components from India in a big way right now but due to our production capacities, we have developed a high quality vendor base there,” said Seok San Jang, vice-president, export coordination group, international business operations, Hyundai Motors. “Though making small cars is our priority there, we are considering opening up a purchasing office to supply components for our plants in China, Turkey and Russia.” Hyundai recently opened its second car plant in India that doubles its total production to 600,000 units per year. Unlike Hyundai, Ford already sources components from India for its plants but is now planning to formalize it by setting up an international purchasing office. “We do have a purchasing division which is part of Ford India that sources components,” a company executive said. “But considering the scope for growth of outsourcing we may set up an office for strategic purposes that will be independent and look proactively at increasing sourcing from India.” (July 9, 2008)