Indian auto firms set up China bases as raw material costs and trade barriers mount

Setting up base

Driven by these macro pressures, auto firms are taking direct action in the region. Tyremaker Ceat is exploring a deeper presence in China to strengthen its sourcing capabilities, according to a top executive. “As a result of the (West Asia) war, we may be looking at alternative raw materials and sourcing options, including China as a potential source country. Should the potential develop, we may also look at recruiting local personnel to manage our requirements,” Ceat managing director Arnab Banerjee told Mint.