After participating in the Automechanika Dubai 2015 last week, represented by over 50 member delegation, the Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s auto component industry, has set its sail to Egypt seeking business opportunities.
The delegation to Cairo’s Buyers – Sellers meet was led by the President of ACMA, Ramesh Suri and the Director General of ACMA Vinnie Mehta. The first ever buyer-seller meet showcased the technologies that Indian components manufactures can offer. The event saw a lot of potential growing opportunities to collaborate as Egypt depends up on imports for auto components up to 60 percent of its total consumption.
At the event, over forty leading Indian auto component manufacturers showcased their aftermarket products to the Egyptian spare part dealers, distributors, importers and OEMs of cars, trucks, and motorcycles. Key aftermarket product on display included body and structure parts, engine and exhaust, suspension and braking, transmission and steering, electrical and electronics and rubber products. Some of the Indian component manufactures including Delux Bearings, Emdet Jamshedpur Pvt. Ltd, Endurance Technologies, Indication Instruments Ltd, Jamna Auto Ltd, Shriram Pistons & Rings Ltd, Stork Rubber Products Pvt. Ltd, Talbros Automotive Components Ltd, Valeo Friction Materials India Pvt. Ltd and Minda Industries Ltd, participated in the event.
Egypt opens a gateway of opportunities in the North-East African market. The nation was the third largest vehicle producer in Africa, after South Africa and Morocco in 2013 and total vehicle sales rose 56 percent year-on-year in June last year. Moreover, the Egyptian automobile industry imported auto components worth USD 900 million imported in 2013 of which India’s share of USD 70 million accounted for eight percent of the total imports. The Egyptian automotive market is expected to grow another 50 percent by 2020. This presents a huge upside opportunity for the Indian auto component industry.
“India is growing steadily in capability with globally competitive products that are well positioned to serve the needs of markets such as North Africa. What we make in India, we also make for the world. We see a sizeable presence of Indian OEMs here which gives us the confidence to service these markets”, said Suri.
The turnover of the Indian auto component industry for 2014-15 fiscal year is expected to grow in the range of eight to 10 percent, from USD 35 billion in 2013-14. The industry is expected to pick up in second half of FY16 and beyond into FY17. The performance on the export front has also been robust- the auto component exports are expected to grow by over 10 percent compared to 5.4 percent in FY14. Exports stood at USD 10.2 billion in 2013-14.
A Bharat Babu, Counsellor, Indian Embassy, Egypt, said, “A Buyers-Sellers meet is a unique initiative to bring potential buyers to meet quality suppliers. This will not only help the Indian companies in showcasing their strengths and competencies, but will also strengthen our bi-lateral relation, ensuring gainful business outcome in the long run.”
“The Buyers-Sellers meet in Cairo offers immense opportunities to the Indian auto component manufacturers to cater to the growing Egyptian aftermarket industry. We are optimistic and look forward to a long standing engagement in this market which will not only give access to the Egyptian auto industry to superior price competitive components matching global standards, but will also help them to engage with Indian manufacturers to forge long-term business linkages,” said Mehta.
In terms of vehicle production, Egypt tops the list of auto manufacturing nations in the Middle East and North Africa. It is also the hub of component exports, particularly to African and Middle Eastern states, and to Eastern Europe. Given the strong growth of auto industry in India and Egypt, it is only natural to seek partnership opportunities for mutual gain and collective benefit, he added.
The two-day event, held at Marriot Hotel in Cairo was participated by representatives from OEMs and local components makers and aftermarket. The event was supported by the Ministry of Commerce & Industry, the Indian Embassy in Cairo, the Egyptian Auto Feeders Association (EAFA) and the Egyptian Junior Business Association (EJB).
Photo Caption: A section of stalls by Indian auto components manufacturers at Automechanika Dubai 2015.