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Tata Group Expresses Intention to Buy US Auto Parts Manufacturers

Indian automotive company Tata Group recently expressed its intention of buying manufacturers of auto parts in the United States.

According to Tata Sons Ltd. Executive Director Alan Rosling, there is a possibility for the auto supplier sector of Tata Group, Tata AutoComp Systems, to purchase US companies that manufacture auto parts.  This auto company based in Mumbai aims to significantly expand its operation, and one vital way of attaining the development it anticipates is through getting hold of other auto parts makers.

Acquiring various auto parts manufacturers is also meant to make the access of customers to auto parts more convenient.  “If your customer is selling vehicles, you can't be supplying many parts from a different continent.  You have to have a point of presence close to the customer,'' said Rosling in a statement from The Economic Times.  With this, production and sales will be the only tasks left to Tata AutoComp System based in Michigan.

The operations of Tata Group in the United States alone made up 31 percent of the corporations’ global sales returns.  According to CSM Worldwide Inc. Auto Supplier Analyst James Gillette, it is very apparent that Tata is determined to move to the global sphere most probably because they have the finances to do so.

According to earlier reports, Tata Group conveyed its interest in global auto supplier Lear Corporation.  Rosling refused to say something about his company’s previous decisions regarding the purchase of Lear or any global auto parts supplier for that matter.  Likewise, he declined to talk about the plan of Tata Group to acquire the premier brands Land Rover and Jaguar of Ford Motor Company.