India's Tata has recently launched a low profile in Nanjing, "the Nanjing Tata automotive components Systems Limited." It is learnt that a total project investment of 7 million U.S. dollars, the annual output could supply 400,000 supporting the use of motor vehicles. Beginning last year frequent media attention into the Indian Tata, and are now quietly entered the Chinese sites, many local auto parts and auto parts manufacturers inverted absorption of breath.

India's Tata Laishixiongxiong

Tata Motors in recent years on the international market moves frequently, or is the acquisition of luxury brands, or is the sale of most of the world's cheapest car, whether or Bianchi, a word in the international community to do the limelight.

Now, it in a " in expansion" of the expansion mode will be extended to the tentacles of China. At present, Tata Nanjing Auto Parts Systems, Inc. (hereinafter referred to N-TACO) are intensively to recruit. It has been learned, TACO Group (TATA AUTOCOMP SYSTEMS LIMITED) by the Tata Group was established in October 1995, for vehicle manufacturers to provide spare parts related to a range of products and services. At present a total of 24 production bases, five engineering centers and three main business units of the export TACO Group is now rapidly in the automobile manufacturers and suppliers in a business expansion, the current clients include DaimlerChrysler - Clijsters Le, Fiat, Ford, General Motors, Honda, Hyundai, Maxindela, Piaggio, Tata Motors, Toyota and Volvo, and other original equipment manufacturers. In Nanjing, the N-TACO is the group in January last year set up a wholly-owned investment enterprises, the main products include automotive interior systems of injection molding, production processes, including injection molding, painting and assembly.

The price advantage is no longer clear

It is said that in international trade, Tata parts cheaper than their Chinese counterparts Price 20%. The past three years, India's annual growth rate of exports of automotive components in more than 30 percent.

In raw material prices and the appreciation of the renminbi fully the larger environment, many local auto parts manufacturers are facing huge cost pressures. One specifically for a local brand of supporting the injection molding manufacturers told reporters that due to rapidly rising raw material prices, the appreciation of the renminbi transactions in the market also accounted for less than cheap, making many small domestic auto parts manufacturers have a profit by re - Less so in the export market, accounting for less than advantages. "Original can rely on low-cost to enter the international market, cost pressures forced us not to pressure prices down." He said.

"In our area, the technological content is not high, low threshold, almost everyone can enter. Peer��domestic business, foreign brands strong intervention, let us Cunbunanxing. Tata also come in now, only in price than we Cheaper, more bad days after. "The Merchant reluctantly told reporters that this is the same with him many parts manufacturers views.

Strong signal of the "threat"

However, the domestic automotive components supply market more cars on the guise Network CEO Wen-Kai Chen, now on Tata "threat" the statement also very early. "The local auto parts suppliers, Tata is not so much a threat, we might as well say that the involvement is a signal to local suppliers mentioned a wake up and tell us to go out and do brands, grasping research and development, but not Only focused on the immediate interests. "

He also pointed out that many local suppliers are facing some problems. At present, China's registered suppliers of automotive components up to more than 20,000, but few in number but not the name on. "Many enterprises do not attach importance to corporate brand image, a large part of suppliers are not even the site, or to the original form of workshops take part in the competition." Wen-Kai Chen said.

"In addition, since most vendors now lost profits, only about 10 percent, so business investment in R & D in funding is very limited, the majority of providers also concentrated in low technology content of the same type of product development. How Extension Exhibition development efforts, the continuation of development efforts is that many enterprises are facing difficulties. "

"We must admit that Tata was indeed a good business, in overseas markets on the entrepreneurial spirit worthy of our local auto parts suppliers to learn. Now many of our local suppliers, has not the courage of this going out."

However, Wen-Kai Chen also said that at present auto parts market profits have been compressed to limit the extent of the endangered, if the same type of product prices can be opened 20%, the quality will be known. "Like Audi and Auto is the same car, but the configuration, technology and other aspects of difference, of course it can do big gap between prices in international market, Chinese-made reputation or stronger than other developing countries, Therefore, we do not have to belittle it is not to discuss the threat of Tata time. "