Indian auto giant Tata Motors is planning to buy auto components not available in the country from China, said company chairman Ratan Tata. The carmaker is looking to offer its cars with automatic transmission for which components are not available in India.
Tata Motors which builds the cheapest car in the world does not produce vehicles with automatic transmission in the domestic market, as per the company's website. However, other leading carmakers - Maruti Suzuki and Hyundai Motors have many automatic models in their range of cars.
The company may benefit from "unbelievable" prices at Chinese component makers. We will buy "sub-assemblies" including automatic transmissions from the neighbouring country, said Tata. He had earlier said that "India must find a way to be an ally with China."
Profit at the maker of trucks, sedans and utility vehicles had fallen to its lowest in three years in the 12 months ended March 31. Competition has been high in the market with carmaker's like Toyota Motor and Ford grabbing market share from Tata.
An industry expert said: "Sourcing from China would be the only way forward for Tata given that an Indian supplier may not be willing to build something like an automatic transmission unless the volumes were high enough."