Mumbai: German-US automaker DaimlerChrysler will source more components from India as it tries to cut costs of its operations in countries like Japan, Germany and the US.

DaimlerChrysler, which sources about 20 per cent of its components from the country, said it is relying on the Indian industry's high product quality and low price.

"Our sourcing from India has witnessed a compound annual growth rate of 20 per cent over the years and it will significantly go up in the coming years," DaimlerChrysler Indian operation's chief Wilfried Aulbur said.

The company is already serving major markets through a group of Indian component makers and is looking at developing its vendor base in the country further, Aulbur said

The India chief said out of the total sourcing at present from the country, components account for 70 per cent with the remaining being services.

The company expects the market for high-end products in India to grow at a rapid pace as a direct effect of the buoyant economic growth, Aulbur said.

DaimlerChrysler, meanwhile, is likely to lay off up to 16 per cent of workers in its North American truck operations next year due to an expected downturn in demand.

The world's largest commercial truck maker, DaimlerChrysler employs about 25,300 in its truck operations in the US, Canada and Mexico.