“Obviously it will affect us. They have better technology and get capital at 1% and we pay 12% here,” vents Raj Bhatia of Bony Polymers, a mid-size plastic parts supplier to OEMs, on being asked about the fallout of the recent entry of global auto parts suppliers into India. Auto ancillary companies from around the world are looking at the Indian market more seriously than ever for multiple reasons.
With growth slowing in a massive market like China, biggies are hoping that India will pick up some of that slack. “India looks like a solid story for the next five to ten years. It will be a very good entry time for suppliers who have technology. For example, five years ago, airbag penetration levels were negligible. We are a three million market now and will be five million by 2020,” says Puneet Gupta of IHS Automotive.
No wonder North Amer