We often the term “localisation” a lot these days. The primary reason for that is that it relates directly to the cost of the vehicle as well as the governments’ Make in India initiative. The aim of this initiative is that any vehicle in India should contain maximum components that have been manufactured in India itself. In other words, there should be the least number of components for which we have to depend on foreign imports. This would ideally reduce our dependence on the other countries and promote our own companies and economy. A perfect example to understand the importance of localization is the current shortage of semiconductors that the world and the automobile industry are facing at the moment. Because we rely heavily on imports for semiconductors, our production is getting affected at the moment. In fact, it has caused a delay in the launch of some products in India.
Also read: India will become number one auto manufacturing hub in the next five years – Nitin…