Where is the global sourcing optimum - Automotive companies in India

Hyundai
Hyundai Motors is interested in increasing their global sourcing from the existint level to a higher level. Sourcing for Hyundai takes place across global plants in China, Turkey, South Korea and the USA. Hyundai has also chosen India for manufacturing their small cars for global sales operations.

Mr Lheem said that Hyundai was sharing manufacturing facilities with its plants in China, Turkey, South Korea and the US with regard to import of certain components from these countries and exports of some of them from its production facility here.

“We are importing some components from these countries and exporting components like body panel to Turkey and engine components and assembly units to Korea and we would like to increase this,” he said, refusing to divulge details on the size of export opportunity that the company intends to give to its Indian suppliers.

He said that the company planned to source components from the local vendors for exports, but cited concerns regarding quality and price as against competition from some of the other countries.

“We are not concerned about the quality of the tier-I suppliers but across the industry. They have to match the superior quality standards for the kind of products required in the European nations. We are not complaining at the moment so much about price competitiveness of India vis-À-vis other countries,” said Mr Lheem.

Hyundai Motors India, which exported about 1.15 lakh cars last year, expects the number to increase to about 1.50 lakh this year.

Source: The Hindu

• The Supply chain is getting dispersed from a local perspective to a global network - Large companies are taking actions to have global foot print. Today it could be China and India who are becoming the factories of the world.......The pursuit will continue !!!!!!!!!!
• The question that remains to be answered is that what the point of balance between global sourcing and local sourcing ?
• Factors like environmental concerns, responsivess to market seem to be the powerful factors that will determine the balance but how are the companies taking this in to account in their decision making?