Nissan to buy more parts from India and China to reduce costs

Nissan to buy more parts from India and China to reduce costs

Japan’s third- largest car maker Nissan has said that they are now going to expand their purchases from India and China to cut the costs of manufacturing their cars.

The company recently reported that their profits fell for the first time since the company’s record loss in 2000.

Nissan said that they will raise global component purchases from low-cost countries to as much as 24 percent of the total. This was confirmed by Carlos Ghosn, Nissan’s chief executive officer.

He said: “Frankly, we have no choice. If you don’t transfer part of your supply to extremely competitive countries, then there is no way you are going to be competitive in the market.”

They are not alone in this aspect. US based automaker GM has also said that they are going to source more parts from India. The company is expected to buy Indian automobile parts worth $1 billion a year within four or five years.