Auto part cos gear up the value chain

Component cos eye Tier 0.5 status, work closer with automakers

- Ayaan Kartik

Large Indian component makers are collaborating with automakers closer than ever before, jointly ideating complex steering, chassis and braking systems, before building and delivering them.

The shift to so-called Tier 0.5 manufacturing marks a shift in their traditional role of making individual parts as ordered, as vehicle systems become increasingly complex and diverse.

Component suppliers are typically classified based on their closeness to the automaker. Tier Is deliver full systems or modules based on automaker specifications, while Tier 2s supply smaller parts to Tier Is. The emerging Tier 0.5 suppliers go a step further, integrating themselves into the development and design phase itself.