US automotive major ArvinMeritor said it plans to more than double its purchases of raw materials and auto parts from India to $500 million(about Rs 2,200 crore) in the next two-three years.
“We buy goods worth $3.7 billion globally, 20% of which is sourced from low-cost manufacturing countries including China and India,” ArvinMeritor President Asia Pacific Rakesh Sachdev told reporters here.
The company purchased goods worth $100 million(about Rs 450 crore) from the domestic market last year and is likely to scale it up to $250 million this year.
He said in future India would play a major role in sourcing auto components for the company’s global operations.“Around one-third of our business would come from Asia region in which India would play a major role,” he added.
ArvinMeritor would also increase headcount at its R&D centre in Bangalore to 400 employees from the present 200 over the next three years.At present, the company operates four manufacturing facilities in India through the joint venture route.
It mainly supplies components for heavy vehicles which account for nearly 50% of its revenues from India.