Japan's earthquake hits Indian auto components supplies

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Japan's quake hit automobile industry may face serious supply chain disruption at a time when its samurai brands, Honda, Toyota, Nissan and Suzuki, are all planning aggressive strategies for India's top growth market. 

Already the local units of Honda and Toyota have canceled promotional events, including the former's showcase event for its eagerly awaited small car Brio scheduled later this week. The company officials said components and knocked down kit stocks would last for now, but there was "no confirmation" on future production plans. 

The only silver lining is India's relatively small dependence on Japan. Auto experts said higher levels of localization levels and cost concerns prompting most Japanese car makers to import from Thailand would help the Indian subsidiaries. For instance, India's market leader Maruti Suzuki relies on 95% local content in older models and between 85-93% in the case of newer models. 


[Source:economictimes]

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