Automotive Component Manufacturers Association of India (ACMA), the apex body of the Auto Component Industry in India, hosted its 58thAnnual Session on September 5, 2018 and witnessed over 1500 participants. ACMA’s Annual Session was addressed by Mr. Anant Geete, Hon’ble Minister for Heavy Industries and Public Sector Enterprises, Mr. Suresh Prabhu, Union Minister for Commerce & Industry, Civil Aviation, Government of India, Mr. Piyush Goel, Union Minister for Coal, Railway, Finance & Corporate Affairs Government of India and Dr. Asha Ram Sihag, Secretary, Department of Heavy Industries, Ministry of Heavy Industry & Public Enterprises, Government of India. During the annual session, ACMA’s study conducted by McKinsey & Co. themed “Auto component industry in India: Preparing for the future” was released by the Chief Guest, Mr. Anant Geete, Minister for Heavy Industries and Public Sector Enterprises.
Mr. Nitin Gadkari, Hon’ble Union Minister of Road Transport and Highways, Government of India highlighted “To strengthen the economy, our government is actively pursuing the policy of substituting imports and boosting exports. I am pleased to see the auto component industry perform remarkable in turnover and exports. He further said, “The government is working towards various kinds of alternative fuels such as bio ethanol. The industry should come forward to develop the technologies to power the new generation engines.
On the occasion, Mr. Anant Geete, Hon’ble Union Cabinet Minister for Heavy Industries, Government of India and Public Sector Enterprises, said “We would be framing the auto policy in accordance with the current state of the automotive industry and demands of the future. I assure the ministry of heavy industries will support the industry to resolve all issues and concerns.”
Speaking on the future, Mr. Suresh Prabhu, Hon’ble Union Minister for Commerce & Industry and Civil Aviation, Government of India said “Government has set a vision of realising a national GDP of USD 5 trillion in next seven years with manufacturing sector accounting for USD 1 trillion with the auto and auto component industry will contribute significantly.”
Based on these four dimensions-constant shift in market dynamics, changing needs of OEMs, technological improvements and discontinuities and an evolving regulatory and trade environment, the auto component manufacturers can explore export opportunities & enhance import substitution.
The auto component manufacturers could also offer premium features at “Indian costs” more rapidly than before, focus on component categories that could contribute more to vehicle costs in the future, expand aftermarket offerings to capture value from enhancing existing vehicle parc and aftermarket exports and offer “rising star” components which could take off in the long run due to increase in electric vehicle (EV) sales. In addition, they could also plan to offer new or modified features that will be in trend due to rise in shared mobility penetration, develop data-enabled services and solutions, form partnerships and ecosystems to create and capture value and expand portfolio to serve adjacent industries.