India: Auto makers fixated with price cuts: ACMA chief.

CHENNAI, Aug. 31 THE Automotive Component Manufacturers Association (ACMA) has criticised the vehicle manufacturers for constantly demanding price reductions, without due consideration for the component suppliers' ability to bear such price reductions.

ACMA's President, Mr L. Ganesh, told Business Line that this trend would not be good for the vehicle manufacturers themselves, in the long run.

"If it is purely done because I have the negotiating power, you don't, it is very short-sighted," Mr Ganesh said, adding that the "long-term interdependence (of original equipment manufacturers (OEMs) and vendors) should be recognised by the vehicle manufacturers". …