Ram Venkataramani, President, Automotive Component Manufacturers Association (ACMA) has said that as India prepares for the introduction of electric mobility in the country, the association has petitioned the government for a well defined, technology agnostic road-map with clear responsibilities of each stakeholder that will go a long way in ensuring a smooth rollout as also for creation of a local supply base for e-mobility. He was delivering the inaugural address on the second day of Asian Powertrain Conference 2018 at Hyatt Regency in Chennai, India. He added that such a road-map will secure the industry from any ad-hoc policy changes which at times destabilise the industry dynamics.
“Electric mobility gradually gains a foothold in India. It will also impact mobility and in such case make the conventional powertrain completely irrelevant. While this is a distant reality, we expect about 20-30 percent of the passenger vehicle and two-wheeler industry to be impacted by this. To support the changing customer needs and to stay relevant, the auto component sector needs urgent supportive government policies. ACMA is actively pursuing with the government to create a fund to support indigenous R&D in the component industry as also for technology acquisition from other parts of the world. This is indeed the need of the hour as the component industry is dominated by SMEs. A new pillar has been created in ACMA to take action in this,” Venkataramani said.
The country is under Geo-political pressure to sign various trade agreements. We urge the government that as a result of these pacts the country should not become net importers of new technology. Instead, we should promote indigenous technology with export potential, he pointed out.
According to ACMA President, the dynamics of the automotive industry across the globe and in India is undergoing a tremendous change as we strive for compliance with various new regulations related to emissions, safety and environment.
“Specific to the Powertrain industry in India, we have made significant investments in transitioning from BS-IV to BS-VI by April 2020. This has indeed been a big challenge for us as Europe took 10-12 years in making such a transition while we are endeavouring to do the same in just three years. Introduction of BS-VI will be followed by RDE Testing-real time testing of emissions on road as in Europe. That apart, the government is expected to announce even stricter CAFE norms for implementations by 2023. Not only the industry but other supporting infrastructure such as testing agencies and monitoring agencies need to be scaled up several folds. ACMA has also actively contributed to the drafting of the new automotive policy of the Ministry of Heavy Industry and Public Enterprises and the new Industrial Policy of the Department of Industrial Planning and Promotion which will prepare the automotive industry for the challenges-imminent as well as future. We look forward to an early announcement of these,” he further said.
ACMA represents over 800 component manufacturers in India. ACMA members supply to OEMs- both global and domestic or too large Tier-I companies, while some have also diversified to service the aftermarket. The component industry scaled a turnover of $51.5 billion growing at 18 percent. Further exports, grew by 24 percent to $13.5 billion. While we exported to over 160 countries, Europe with 34 percent, followed by North America with 28 percent market share were our key export destinations.
The automotive mission plan of the Indian government envisages many fold growth in vehicle industry by 2026, this would make India make the top two auto producer in the world. It would result in the auto component industry growing five times its current size to $200 billion, with exports scaling $70 billion and the aftermarket growing to $32 billion.