For its part, the Auto Component Manufacturers Association (Acma) has decided to hold a roadshow in Gujarat on 18 and 19 March. “Since the state is tipped to become the next hub (for auto manufacturing), a lot of issues need to be resolved by the state government,” explained Mehta. Suzuki has a contract manufacturing agreement with its subsidiary Maruti Suzuki India Ltd under which the former sells products at cost price to the latter. “Both Maruti Suzuki and Suzuki Motor are in constant dialogue with the suppliers and encouraging them to expand capacity in line with the expansion plans. The manufacturers mentioned above did not comment on the shortfall in the number of auto parts makers based in Gujarat.

Source: Mint March 15, 2018 21:45 UTC