India's Tata Motors plans to source components from China

As it plans to launch vehicles with automatic transmissions in India, Tata Motors Ltd. is considering China as a possible source for auto components. Bloomberg TV reported that Chairman Ratan Tata said that the Indian auto giant will benefit from the “unbelievable” prices of components produced in China. Tata said his company will buy “sub-assemblies”, including automatic transmission systems from China. The company said it will beat competitors, namely Japan’s Toyota Motor Corp. and U.S.-based Ford Motor Co. by offering customers a wide range of vehicles to choose from. The company’s sales fell by 3% in June from 66,358 vehicles to 64,341 units, compared to last year due to low demand brought about by high interest rates and increases in the price of petrol. (July 10, 2012)