Localization is a term which is mentioned in a lot of Automobile news articles. This term is related to the manufacturing or assembling of automobiles. Especially in context of Indian automobile manufacturing, a lot of car companies in India get some of the automobile components from outside India. For example, CNG kits in factory fitted CNG vehicles, transmission components and gears, ECU units etc. There are many components which are imported from the other countries. The main reason for importing these components is lack of availability of some of these components in India locally, or sometimes car makers prefer to use the imported components because of high quality standards of certain components.
What Is Localization?
For a car maker, Localization means locally producing or manufacturing the components at its own plant or in ancillary units. Localization is very beneficial for an automobile maker as it cuts down the cost of the component and the car or automobile as a whole. Also the waiting period between the order and receipt of the component is also reduced. This is also useful in socio-economic sense as higher localization means more production in the region which means more business and employment opportunities for the people of the region where automobile factories and ancillaries are located.
The only concern with localization, especially for the components which are made for the first time is the quality and technological challenges. For example, if a global car maker is setting up its plant in India and it uses certain quality of components which are not available in India, making such components in India through the ancillary may not match the quality of the component manufactured at the base plant in the other country because of infrastructure or technological challenges. This is the reason because of which, some amount of components are usually imported to keep the quality of the automobile high and large amount of the components are localized to keep the overall cost of automobile low and competitive.
Hope my explanation was simple and basic enough and did not confuse you.
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[...] the localization plans for this car come under implementation then the car’s price is expected to drastically fall [...]
[...] from Suzuki Japan and remaining are made locally in India. It is desirable to have high or complete Localization of components of cars for better inventory flow and cost perspective, but due to some practical [...]
[...] to be higher than the petrol variants. The difference in price will largely depend on the levels of Localization Honda can achieve while making these engines in India. Stay tuned for more news by signing up for [...]
[...] a cut of as much as Rs. 10,000 on the existing price. This change might be mainly because of more localization and also partly because of marketing team’s decision to make it a more competitive product [...]
can anyone tell me what is the percentage of laocalization of i10, i20 and scorpio
[...] some new platform or even a slightly reduced Fabia Platform. The small car will have high levels of localization and will be manufactured in India only to keep the prices in the desired price segment of Rs. 3 to [...]
[...] the competition stared to steal the sales numbers. Although Honda credits this price cut to the localization achieved by Honda SILE, but to a large extent, its also equally because of the falling sales that [...]
[...] months Tata has been working out ways to start localization of Jaguar and Land Rover products and recently Land Rover Freelander 2 turned out to be the very [...]
[...] Crores in India. Toyota will not only increase the production capacity, but will also increase the localization or local sourcing of parts which will increase employment opportunities for skilled workers in [...]
[...] it quite competitively as the R3 is an Indian design and is expected to have very high degree of localization with minimal use of imported components. This will give Maruti a price advantage of Innova and [...]
[...] car Micra because of its premium pricing in India, which is most probably because of low levels of localization of its parts in India, but we are expected this to get better with Sunny. Its been quite some time [...]
[...] product. To get back in the race to the top, the manufacturer has been trying hard by following the localization strategy and then cutting down the prices but it is still not able to record enough sales. This can [...]
[...] Jazz which was surprisingly cheaper than the previous variant as there was a very high degree of localization on this new [...]
[...] Australia from India in the longer run. Peugeot is also working out the strategies to increase the localization in India to become more competitive in the years to come with the help of local suppliers from [...]
[...] launched the Toyota Prius and sold a little more than 155 units of the same. Toyota is considering localization of the Prius to reduce its price but it will depend on government’s upcoming policy on hybrid and [...]
[...] 2011 when Honda SIEL India launched it in a more reasonably priced variants after increasing its localization. Since then Honda Jazz has not looked back, same is with Honda Brio, a great package priced [...]
[...] a single management control. All key initiatives to strengthen the business, including sourcing, localization, production planning, manufacturing flexibility and cost reduction can be controlled, monitored and [...]
[...] the localized production (with some localization) of the M-Class, another very important addition is the new state of the art paint shop which is [...]
[...] down the costs, and together they account for 14 % location. The company has promised that soon the localization will be increased to 30 % and therefore we will see another price [...]
[...] increase its profit margins, this is the right step Hyundai is taking. With localization in production of diesel motors like that of Renault-Nissan with its K9K, Hyundai will also be in a [...]
[...] finally launched in India post the Brio diesel sedan. But one of the hurdles Honda is facing is the localization of the Diesel engine unit so that a small car like Brio diesel hatch may become economically [...]
[...] that they will price it competitively by increasing the local sourcing and production. Higher localization levels will allow Honda to keep the costs low and compete well with the segment leader Dzire. Honda [...]
[...] One of the key reasons why Honda Cars India is able to keep the prices under check is the amount of localization which is planned for the Amaze in India. In its previous experience with car sales in India, Honda [...]
[...] in the range of the top end variant of the CBR 250R in India. This will be due to the high level of localization KTM will bring to the bike in India. Expect this 45 BHP – 35 NM road-runner to hit the Indian [...]
[...] manufactured at Pune facility of Tata owned British marquee Jaguar Land Rover since 2011. With the localization of the assembling, the Jaguar XF now start at a price of Rs. 44.5 Lakhs ex-showroom [...]
[...] when the car is produced, lower cost of spares and a cheaper cost of ownership. All this localization will lead to Honda putting an aggressive price tag on the SUV which would compete with the Toyota [...]
[...] 2013. The car is now being produced in India and thus will attract less taxes and increase in the localization has helped Honda Cars India to price new CR-V more aggressively. The prices are expected to be [...]
[...] Rs. 15375 for diesel models of Amaze. The reason behind the competitive price of Amaze is its high localization level of [...]
[...] Duster is about 60% localized and it will be gradually take up the localization levels to [...]