In the next two years, the Ford Motor Company (Dearborn, Michigan / USA; www.ford.com) is planning to raise its purchases of car components from India to USD 160m a year. Sites in Europe and North America are currently being supplied with Indian parts worth USD 40m a year. Tata Auto Plastics (www.tacogroup.com/taps), for example, manufactures dashboards, injection moulded parts for heater fans, and plastic trim and panelling for interior and exterior applications for various Ford plants in the industrialised countries. Another company belonging to the Tata Group (www.tata.com), the timepiece manufacturer Titan Watches (www.titanworld.com), supplies dashboard inserts to Europe for the Ford Mondeo. The Tata Group is one of India´s biggest companies and has annual sales amounting to over EUR 9.2 bn.

Ford recently presented its highest quality award – the “Ford Gold World Excellence Award” – to an Indian supplier for the first time. The recipient was the elastomer and polymer processor, Cooper Tyres India (www.coopertires.com), a subsidiary of the US tyre group of the same name. Ford purchases hydraulic lines for power-assisted steering and fuel hose from the Indian company. According to calculations drawn up by the Ford management, injection moulded and extruded plastic parts, which require wage-intensive dies and moulds, can be produced in India at considerably lower cost. Ford, the world´s second-largest car producer, has so far awarded Q1 status to ten Indian suppliers. Such status means that, if the demand arises, these companies are qualified to supply all Ford production facilities worldwide. Discussions are currently being held with other potential Q1 suppliers from India concerning parts for vehicle interiors. Ford is attempting to attract Indian suppliers with the assurance that every component with Q1 status will be manufactured in very large volumes, so that the companies can expect a “big volume gain” before the end of this year.

According to David Friedmann, Managing Director of Ford India (www.india.ford.com), the Indian domestic market also shows considerable growth potential. Ford India will raise its production capacities particularly for pick-up vehicles and light vans. India has a population of over one billion and nowadays boasts an army of well-trained, highly motivated and yet “inexpensive” engineers and scientists, which the industrialised countries – above all the US and UK – endeavour to attract to their countries (see PIE 4, 2003). With successes like the launching of telecommunication satellites into space and achievements in computer technology, India´s technical skills have earned worldwide recognition. In addition, the rise of the Reliance group has shown that the plastics industry certainly does not need to shy away from comparison despite the unfavourable climatic conditions.