Global Automakers Show Interest in Tata Nano Suppliers

Even if the Tata Nano, worlds’ cheapest car, is not yet ready to hit major markets like Europe, US or Japan, global automakers are taking a real interest in the way the Indians managed to drastically cut costs. And one of the most important steps the global industry has made is identifying and targeting Tata Nano’s major suppliers.

The idea is simple: if suppliers can produce parts that cheap, it’s common sense that everybody is interested. According to India’s Economic Times, international manufacturers interested in the Nano suppliers include Renault-Nissan, Toyota, VW and Honda. The same newspaper also added that the future Renault-Bajaj's ultra-low-cost car, a Nano competitor for the Indian market, will benefit from the same supplier base.

"It would inevitably use the Nano parts suppliers. The project will source almost 100% from the Bajaj supply base, but many suppliers in that pool are also common to the Nano," said a person in direct contact the Renault-Bajaj ultra-low-cost car project, as reported by just-auto.com.

It is a known fact that all automakers, motorcycle manufacturers and commercial vehicles companies are in need of cutting costs, so all their attention is on the Nano project, said Jayant Davar, president of ACMA and vice-chairman and managing director of Sandhar Technologies.

"They are looking at launching their vehicles at lower prices than their existing range. But before they tie up officially, they want their components to be validated by their Japanese and other overseas parents," he said.