98% Localization: What's Remaining 2% Component Imported in Cars?


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I was intrigued with this comment, at the launch of ..

‘KWID’, ok Renault being an outside mfr. they could be handing out loyalty.

“VITARA BREZZA”, same point as above, but Maruti is an Indian Co. since a few decades.

‘KUV 1OO’ they also mention 98% Localization – what!! (M&M "Et tu, Brute?")

Please apprise me ohh! knowledgeable gurus.

Regards

Vinod
 

allhyundaicars

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Re: 98% localization!!! – what is the 2% component imported in these vehicles?

I read on some site that the infotainment unit is imported from france ( renault)
 
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Re: 98% localization!!! – what is the 2% component imported in these vehicles?

there is few components that are not matching quality standards or company not able to find local vendors that can provide those parts. last year my brother got a requirement to make a bolt that have 4 bends & is empty from inside to pass some liquid like break oil, they try to make it using cold forging but not able to match quality requirements & in the end company import this from other country. there is many electronic pars too that are imported from china/ Taiwan as they cost higher in India as compare to importing.

In India most of mechanical component manufacturer use old imported machines from other countries, these machines also not able to make all latest design parts & if they import new generation machines then they didn't get enough profit to justify cost of new machine that is also one of region behind not having 100% localization.
 
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but Maruti is an Indian Co. since a few decades.
Vinod
I thought otherwise:
Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an automobile manufacturer in India. It is a subsidiary of Japanese automobile and motorcycle manufacturer Suzuki Motor Corporation.
Originally, 74% of the company was owned by the Indian government, and 26% by Suzuki of Japan. As of May 2007, the government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog.
Suzuki Motor Corp has raised its stake in Maruti Suzuki to 55%, triggering speculation about the Japanese firm's intentions for its Indian subsidiary and whether the move is part of a larger plan to take full control of the country's top carmaker.
Suzuki raised its stake in Maruti by 0.8% through secondary market purchases "very recently", two persons familiar with the matter told ET. One of them, an investment banker, said Suzuki was set to increase its stake further. Indian rules allow companies to make creeping acquisitions of up to 5% a year and any increase beyond 55% will require Suzuki to make an open offer for another 20%.
After Suzuki, FIIs and LIC are the biggest stakeholders in Maruti, owning 22.21% and 11.22%, respectively.
That could be the reason why the company has even changed its logo from the earlier "M" for Maruti on its cars to the latest "S" for Suzuki.
source: Wikipedia and Suzuki raises Maruti stake, fuels talks of full control - timesofindia-economictimes
The latest: State-owned insurer LIC has sold over 2 per cent stake in Maruti Suzuki India reducing its holding to 6.22 per cent in the the country's largest car maker.
source: http://articles.economictimes.india...ti-suzuki-india-lic-trims-stake-maruti-shares
So as of today, Maruti suzuki could be called a majority Japanese company operating in India.
 
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Thread Starter #7
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Bumping of my thread.

^^ thanks all for your inputs. Found something interesting.

While going thru the Vitara Brezza review on TBHp, this is what they said about the 98% Localization..

98% of the Vitara Brezza's components have been locally sourced. It could have easily been 100%, but the 2% is perhaps to appease Suzuki Japan.

I am still inquisitive about this 2% imported component!! or do we have a verdict?
 

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Often, Turbos are Imported. These babies have to be made with VERY high Precision & Quality.
I regular Car turbo Spins anywhere from 1.5 Lac to 2.5 Lac RPM. Yeah. Its LAKH not 1000 or something.

I think tata Buys turbos from Borg warner. Other Famous maker is Garett.
Also, ECU & certain Sensors/Chips maybe imported.
 
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Suggestions of Fuel, ECU, Turbo even HUD accepted, so as an e.g. KWID top end Ex-works 2.5 to3L, so 2% would be approx 5.5k? for the HUD does it make sense.

I still feel its just a marketing gimmick/ploy, to appease the parent company, that this 2% notion is used.
 

bhvm

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They're not saying if 2% is for Top end variant or Base variant. If its only top variants, that 2% is mostly HU & Accessories. If its base/ All Variants- Its generally mechanicals/ ECU/Sensors.

And we don't know if its actually 2%. I maybe actually variable.
 
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Bumping of my thread.

^^ thanks all for your inputs. Found something interesting.

While going thru the Vitara Brezza review on TBHp, this is what they said about the 98% Localization..

98% of the Vitara Brezza's components have been locally sourced. It could have easily been 100%, but the 2% is perhaps to appease Suzuki Japan.

I am still inquisitive about this 2% imported component!! or do we have a verdict?
So the presumption is somewhat answered, it is royalty paid to the parent company, but the pertinent question is still the percentage.

Source:

Maruti begins paying royalty to Suzuki in rupees with Brezza - Livemint
 
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Often, Turbos are Imported. These babies have to be made with VERY high Precision & Quality.
I regular Car turbo Spins anywhere from 1.5 Lac to 2.5 Lac RPM. Yeah. Its LAKH not 1000 or something.

I think tata Buys turbos from Borg warner. Other Famous maker is Garett.
Also, ECU & certain Sensors/Chips maybe imported.
TATA buys most of it turbochargers from HONEYWELL. They have a plant in India which manufactures and supplies Turbochargers for almost all major companies in India and also exports from here.

Garett is a subsidiary of Honeywell.
 
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Thread Starter #13
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So friends, the illusive search still goes on, but for the firang mfr, who to "appease" the parent company, use the 2% component recipe...
 

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