Malaysia eyes India rubber auto parts mart

Malaysia, the world's fourth largest natural rubber producer, now aims
to sell rubber automotive parts in India's vibrant automotive segment.

Malaysian
exporters are trying to squeeze into India's already congested market,
but are confident their quality products have an edge to penetrate the
busy sector.

"The best option for us is to explore the
possibilities of supplying to Indian suppliers who supply to OEMs
(original equipment manufacturers). Directly may not be possible.

"Another
option is the replacement market, where the real potential is. There is
great opportunity in India for Malaysian producers," Serajudin Ismail,
chief executive officer of Malaysian Consortium of Rubber Products Sdn
Bhd, said.

Industry analysts forecast passenger car sales alone
to hit a healthy 11 to 13 per cent growth this year, after a blip late
last year due to high interest rates, rising fuel prices and domestic
inflation.

In India, with the world's seventh largest automotive
industry, 159,325 cars were sold last December, and 2011's total sales
touched 1.95 million vehicles.

In 2010 India imported
rubber-based automotive parts worth nearly US$356 million (RM1.13
billion), with Malaysian exporters grabbing roughly two per cent of the
market share -- making Malaysia the 11th largest foreign supplier.

"We need to expose Malaysia to Indian suppliers on Malaysia's capabilities in producing rubber auto parts.

"The perception among Malaysian producers is always that India is a difficult market because of high tariffs.

"But
with CECA (Comprehensive Economic Cooperation Agreement), there is more
opportunity to enter and compete," said Low Yoke Kiew, Malaysian Rubber
Export Promotion Council's director of marketing and development.

Four
Malaysian automotive products manufacturers participated in the
just-concluded 11th Auto Expo held from Jan 7 to 11 in Delhi. --Bernama