The automotive industry is an engine of growth for the Indian economy. The auto component industry contributes 25.6% to the manufacturing GDP and 2.2% to National GDP, providing direct employment to 1.5 million people.
Over the years the component industry has adapted well to the changes in the policy & regulatory environment and the needs of its customers. To realise their ambition of graduating from being a build to print to one that is art to part, the auto component manufacturers must focus on R&D to help generate IP in India and in the process, create greater returns than the cost of capital to make India an attractive destination for investments.
The ‘Make in India’ campaign of the government has enthused the entire manufacturing sector. Focus on ease of doing business, implementation of GST and other reforms augur well for the component manufacturing industry.
While the last year had significant challenges for the sector, the component industry fared reasonably well with exports scaling to USD 11.2 billion and an overall turnover of USD 38.5 billon. Aimed at an holistic growth model for the automotive industry, The Automotive Mission Plan (AMP 2026) has set a target of a turnover of USD 200 billion by 2026 for the auto component sector backed with strong exports ranging between USD 70 -80 billion.
This year we have adopted ‘Make Quality & Technology in India’ as our theme and we would endeavor to focus on strengthening our capabilities for new product development, improving quality standards, evolving our technology for meeting the evolving emission and safety standards, upgrading people skills to support domestic and global expansion of OEMs, building auto-electronics manufacturing capabilities, embracing digital technology in manufacturing to transform productivity thus enabling our Industry and India become an attractive destination for investments.
This calls for a more collaborative approach between the various stakeholders of the value chain i.e. component manufacturers, OEMs, Machine Tool Suppliers, the Raw Material industry and the Government. If we have to grow from being locally competitive to globally competitive, our relationship must graduate from being transactional to a symbiotic one.
I am confident that the Auto Components Industry will achieve the targets of the Automotive Mission Plan 2026 and will make due contribution in helping develop India into a globally competitive manufacturing nation, delivering quality products, made in India for the World.
M/s Mark Exhaust Systems Ltd.