Indian auto major Tata Motors has decided to source automobile components from China for its manufacturing operations in India. The company wants to buy specific auto parts to manufacture vehicles with automatic transmission in India, stated Mr. Ratan Tata Chairman Tata Motors.
The maker of sedans, hatchbacks, utility vehicles and commercial vehicles will source sub-assemblies such as automatic transmission from Chinese component market. With this move, the automaker expects to compete with the likes of Toyota Motor and Ford Motor by offering automatic transmission vehicles to customers. Moreover, buying parts from China would be more efficient and cheaper for Tata Motors with respect to manufacturing operations for low volumes as opposed to developing the same through in-house R&D.
Tata Motors’s car portfolio in India doesn’t have any automatic transmission vehicles and this would be the company’s first foray in the segment.
