Multiple Trends Shape Future Of Indian Auto Component Industry

The future of the auto OEM and auto component industry is being shaped by multiple trends, policies, technologies and discontinuities, a study commissioned by McKinsey & Company on the directions of Auto Component Manufacturers Association (ACMA), said. The report was unveiled at the 58thAnnual Session of ACMA, the apex body of the Auto Component Industry in India. The study on Auto component industry in India: Preparing for the future, reflected upon the opportunities these trends create for the auto component industry and how can the industry prepare itself to capture a share of these opportunities.  It indicated that there are tremendous opportunities that await the auto component industry in India on the back of the growing vehicle consumption in India on one hand and the introduction of next generation mobility on the other. ACES – Autonomous, Connected, Electric and Shared mobility, like the world over, will also impact the dynamics of the Indian automotive industry and the opportunities in this space are contingent to Indian auto component industry scaling up on the technology front.

Growth indicators paint a picture of optimism for India – by 2023, it could be the world’s fifth-largest economy, with a GDP of USD 4.7 tn. Anticipation of a growing consumer class, enhanced ease of doing business, expanding infrastructure – such favorable factors could propel the country forward, and, with it, India’s automobile industry. The Indian automotive OEM industry is already in a strong position. Globally India’s automotive industry is at the forefront of many segments – leading in two-wheelers, segment a cars, and tractors.

Earlier, the Annual Session was addressed by Anant Geete, Hon’ble Minister for Heavy Industries and Public Sector Enterprises, Suresh Prabhu, Union Minister for Commerce & Industry, Civil Aviation, Government of India, 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.

The event also witnessed key note address by eminent leaders from the automotive industry including Kenichi Ayukawa, Managing Director, Maruti Suzuki India, Guenter Butschek MD and CEO, Tata Motors, Minoru Kato, President and CEO, Honda Motorcycle and Scooter India, Rakesh Bharti Mittal, President CII & Executive Vice Chairman, Bharti Enterprises, Dr Pawan Goenka, Managing Director, Mahindra & Mahindra, Dr Abhay Firodia, President SIAM & Chairman, Force Motors, Nirmal Minda, President, ACMA & CMD, Minda Industries and Ram Venkataramani, Vice President ACMA & MD, IP Rings.

Commenting on the future of the industry Nirmal Minda, President, ACMA said, “The auto and auto component industry, globally and in India, is undergoing a transformation across its entire supply chain; several factors such as new regulations on emission, safety & environment, fast changing customer preferences, shifting economic dynamics and trade policies are reshaping our industry. The case globally, e-mobility is fast catching the imagination of our policy makers; a definite policy delineating the road map for e-mobility in India is therefore the need of the hour. We are confident that as hybrid and electric technologies gains traction, vehicle manufacturers will support localisation of components.’

Gadkari said, “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. I believe there are immense possibilities for this sector to grow further.  Our government is driving the agenda of promoting Innovation, entrepreneurship, technology and research. The government is working towards various kinds of alternative fuels as an effort to reduce carbon footprint by introducing first generation bio ethanol. The industry should come forward to develop the technologies to power the new generation engines.”

Geete said, “The automotive industry is the top contributor to the Government of India’s Make in India initiative and has accounted for maximum investments under the program. Going forward, 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.”

Prabhu said, “Government has set a vision of realising a national GDP of USD five trillion in next seven years with manufacturing sector accounting for USD one trillion with the auto and auto component industry will contribute significantly.”

Ram Venkataramani Takes Over As ACMA President

Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s auto component manufacturing industry, announced the appointment of Ram Venkataramani, Managing Director, India Piston Rings as its President of ACMA while Deepak Jain, Managing Director, Lumax Industries Ltd. as Vice President for the term 2018-19. The announcement was made at the 58th Annual Session of ACMA.

Announcing the new leadership, ACMA Director General, Vinnie Mehta, said, “We are delighted to announce the appointment of Mr. Ram Venkataramani, as ACMA President and that of Deepak Jain as Vice President. Venkataramani, an industry veteran brings to the body over two decades of rich experience and a wealth of knowledge. Mr Deepak Jain also brings in considerable proficiency and leadership that will help advance the ACMA agenda.”

Accepting the new responsibility, ACMA President, Ram Venkataramani, said, “It is a matter of privilege for me to be appointed as President of ACMA. Having deep roots in the auto component industry, I can well appreciate the challenges facing the industry today, especially in light of several regulatory challenges as also enhanced customer expectations.  It is an imperative for the component industry to invest in technology and focus on higher value addition to stay relevant and competitive. In an industry where change is the only constant, I am confident that with the support of the government and all our stake holders, we will not only overcome the challenges but also harness the newer opportunities that arise due to the technological transformations in the automotive industry.”

Photo caption: Outgoing President, Nirmal Minda, ACMA with the New President Ram Venkataramani, ACMA & MD, IP Rings

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