The Indian operations of GM may not get affected by the automaker’s filing for bankruptcy, but for the Indian auto component industry, it’s a great opportunity to grab.
Mahindra and Mahindra (M&M) too want to join in as after Europe it’s a great chance for them to enter the US.

Anand Mahindra may have not managed to get a share of the global auto pie, be it Jaguar Land Rover or even the Hummer. But GM’s bankruptcy could mean a whole new opportunity for M&M, especially its auto component arm Systech. It has been focussing on Europe to grow its global business, but now US could well be the new frontier as the dust settles on the Big 3 auto majors.
Hemant Luthra, president of Mahindra Systech, said, ” We may consider acquisition of units that have opened up post GM bankruptcy.”

Well, the cost advantage, according to analysts, is bound to alter the vendor allocation for the new GM—a move that could see component exports from India to GM crossing its current $350 million mark.
But M&M would prefer to remain cautious, as the vendors in US are also getting ready with their price cuts.

“But there are a lot of inventory in US and Canada. They come to India and check our prices and go back and say we will revise prices, ” said Luthra.
However, Mahindra’s hunt won’t be lonely. Even rival Amtek has gone on record to say that they will be keen on GM’s assets. So, will it again be a bidding war? Clearly that’s something none of these Indian component makers would want, even if the assets come cheap.

source: NDTV Profit

Tags: general motors, gm, GM bankruptcy, m&m, Mahindr Gm, mahindra & mahindra, mahindra shares

Similar Posts:

• Maruti, Hyundai, M&M report record sales
• M&M auto sales up 42% in December
• BNP Paribas Securities recommends M&M
• Budget impact: Maruti, M&M lead Auto rally
• M&M appoints Arun Malhotra as Sr VP,Sales & Channel Dvlpmnt