Monday, April 29, 2013

Mexico offers good opportunities for Indian auto firms






Puebla (Mexico), April 27 — Mexico, the world's eighth-largest producer of automobiles and its fourth largest exporter, provides many opportunities for investment to Indian automotive companies, said Indian Ambassador Sujan R.Chinoy here.

Inaugurating an automotive products manufacturing plant, set up by Noida-based Samvardhana Motherson Group of India, Chinoy said that presence of Indian companies in Mexico also gave them access to excellent supply chains and markets across North American Free Trade Agreement (NAFTA) and Mexico's 44 free trade areas (FTA), a statement said Saturday.

"The automobile sector was strong in both countries, with growing synergies and opportunities for cooperation," Chinoy said and pointed out that other companies from India in the auto sector had also taken advantage of the opportunities offered by Mexico.

Bajaj Auto, the world's fourth largest manufacturer of motorcycles, has an assembly plant in Mexico City in partnership with Autofin. JK Tyres has acquired Tornel, the local tyre manufacturer, and is doing very well.

From Mexico, TREMEC has invested in a plant in India's Pune to manufacture auto transmission systems. NEMAK, part of the ALFA group, has invested in a manufacturing facility in Chennai for engine blocks and cylinder heads, he told the large gathering at Puebla, the fourth largest city in Mexico.

The Samvardhana Motherson Peguform plant will manufacture automotive products to cater to large MNC automobile producers such as Volkswagen and Audi in Puebla.

The investment of $30 million has generated 250 new jobs, and is likely to go up to $70 million in the near future generating a further 200 jobs, the statement said.

Samvardhana Motherson Group with a presence across 25 countries, had a turnover of $4.14 billion in 2011-2012.


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