30 | AutoPartsAsia | NOVEMBER 2017request for quote, we hold techno-
commercial discussions with him
before he begins to work for us.”
Some of the companies involved
in vehicle manufacturing and
components manufacturing, insist
on their suppliers to have foreigncollaborators. It is not the case with
Mahindra. However, if the technology
is extremely complex and the supplier
is not adequately equipped to handle
the technology, the company suggests
partnerships. Mahindra has taken the
lead in getting such partnerships in
many cases.The company assists the suppliers
in different ways. For certain foreign
suppliers who come to India through
them, the Mahindra team works with
the suppliers to make sure that they
present the right policies as most
suppliers may not be aware of certain
procedures to be followed in India
by foreign business houses. The
Mahindra team helps the suppliers
even to the extent of forming their
manpower and HR policies; they are
offered 360-degree support. Last year
there were 10 suppliers from Korea
who got into technical collaboration
with Indian suppliers. These were all
SsangYong suppliers who were willing
to come to India as part of the ‘Make
in India’ drive.ICT Support
Globally, many of the hardcore
software developers, including
Google and Apple, are getting into
the automotive space. The number
of sensors used in a vehicle is
increasing. For the OEMs, these are
yet another portfolio to be handled.
Sikka observes that the companyhas many suppliers who make
sensors. On the widely-held view that
importing chips and sensors were
better than local supplies, Sikka said,
“Localisation is happening now for
most sensors. For our next line of
products, which will happen in the
next two-to-three years, most of our
sensors will be local. The vehicles
that we are producing now have all
imported sensors because when we
did these vehicles four years ago,
there was no industry for sensors. In
three-to-four years everything will be
localised. Recently we have given
a good chunk of business to Minda
Stoneridge to make sensors for us in
India. Like this, many Indian suppliers
are now getting into manufacturing
high-tech electronics systems. One
of our suppliers in Delhi, Nippon
Audiotronics, has set up a full line to
make infotainment systems in India,
which is a clear import substitution,”
he said.Constant Flux
The automotive industry is in a
constant flux. Evolving always, it is
very competitive and challenging.
Every supplier knows that he needs
to change, needs to up-the-ante
and move up on the technology and
managerial skills ladder, and build new
capabilities. Sikka feels suppliers are
changing but they still need to catch
up a lot, mainly in R&D efforts.COVER STORY