Local call

Calcutta, Nov. 23: Skoda Auto, the Czech subsidiary of German auto major Volkswagen, is planning to source auto components from India for its global requirements.

Sources said the company is talking to several Indian auto ancillary manufacturers regarding this and is hopeful that component imports will begin from next year.

“Sourcing auto components from India appears to be a reasonable move as the kits made here are more cost-effective than those produced in Europe. Hence, a lot of global automobile manufacturers are either setting up their own component manufacturing units here or entering into tie-up with local players for supply of components,” they added.

Skoda India, the subsidiary of the Czech parent, is also gearing up to commission its manufacturing unit in Aurangabad in February next year.

Sources said the company plans to use the Indian unit, for which it has invested around Rs 250 crore, to manufacture passenger cars.

It will be used as an export hub for the south and Southeast Asian countries.

The plant, coming up on an over 3-lakh sq. metre plot, will have a manufacturing capacity of 15,000 units in the first phase, which will be ramped up later depending on the market demand, they said.

The company is currently selling around 8,000 units of Octavia, which is assembled here. “Once the manufacturing facility is commissioned, the indigenisation of the vehicle will move up to 70 per cent, thus reducing costs to a large extent,” they said.

The company is also firming up plans to introduce at least two new vehicles in India in the premium segment.