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 automotive industry is an engine of growth for the Indian economy. The auto component industry contributes 2.3% to National GDP, providing direct employment to 1.5 million people.
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 10.9 billion and an overall turnover of USD 43.5 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 'Future of Mobility in India - Challenges & Opportunities for Auto Component Industry' as our theme for the year 2017-18 as E-mobility can no longer be ignored. Industry needs to start viewing it with an action-oriented lens. In order to succeed, the Government and the automotive industry need to form a long-term and consistent policy for e-mobility.
ACMA would endeavor to focus on strengthening it members' capabilities for new product development, improving quality standards, evolving technology for meeting the evolving emission and safety standards, upgrading people skills to support domestic and global expansion.
The auto-component industry in India is today entering a new phase in terms of global exposure and adoption of technology. The priorities for the future would be to put much greater focus on R&D, to help generate intellectual property in India where world class production quality will be a given. It is important to acknowledge that a transformation is round the corner and we will have to gear up to it.
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.
I am confident that as an industry we will rise to the challenges and with the support of all stakeholders, firmly build on the global-quality manufacturing ethos that we have already established in the last few decades.
Nirmal K. Minda
Minda Industries Ltd.