Flamboyant display of genuine and innovative products
Special Feature by Dhiyanesh Ravichandran and Rajesh Rajgor
ACMA Automechanika New Delhi 2019 had its main focus on the latest advancements and market opportunities in the auto components and aftermarket industry in India, with a flamboyant display of genuine and innovative products by exhibitors and zealous business visitors on all the four days of the show at Pragati Maidan in February.
Having entered its fourth edition, the event took off to a great start on February 14 at the classic expo venue, with Mr. Vinnie Mehta, Director General – ACMA, invoking the quintessential charm of Valentines Day to highlight the substantive partnership behind this event. As a leading aftermarket exhibition in the Indian sub-continent, the main objective of the show remains fairly outright – to offer a unique platform for the industry to source new products and build value partnerships through massive expo, networking events, knowledge forums and conferences.
“India is proceeding towards becoming one of the most significant market shareholders in the automotive industry. With the notable growth strides taken with every edition, ACMA Automechanika New Delhi has become synonymous to authenticity. The show once again reinforces our commitment to promote best quality products and pure business.
– Mr. Raj Manek, ED and Board Member, Messe Frankfurt Asia Holding Ltd.
The 2019 edition saw 515 auto component manufacturers and 13,267 aftermarket professionals and trade visitors converging to make a difference. This included the latest aftermarket advancements from 16 foreign contingents, with a gamut of innovations and live demonstrations from leading companies and brands. The visitors’ base was equally wide, ranging from domestic OEMs and component suppliers to aftermarket retailers and workshop folks from all over the country and abroad.
Commenting on the significance of the expo this year, Mr. Michael Dehn, General Manager – Sales & Marketing, Messe Frankfurt Trade Fairs India Pvt. Ltd., said: “It’s turned out to be a fully-booked show this time, very clearly conveying strong vibes from the Indian aftermarket industry. And the real difference perhaps is the connection of Automechanika New Delhi to that of all other shows we run across the globe, which makes all the difference”.
“The future vehicles will become more complex and challenging for the aftermarket industry. It is therefore imperative for the manufacturers, local garages, technicians and the mechanics to upskill and remain above the curve. ACMA Automechanika New Delhi is one such platform that can enable us to share and learn what the industry needs to unleash its potentials.
– Mr. Ram Venkataramani, ACMA President
He was surprised with the way Automechanika New Delhi has grown since its debut in 2013, he said while noting that the domestic auto component industry is getting ready for a much bigger evolution in the years to come.
Complimenting Mr. Musshof’s observations, Mr. Ram Venkataramani, ACMA President, said: “The response for this show has been simply phenomenal this year, we were completely sold out in terms of exhibitor space much ahead of the show. This year, the greatest attraction would be country specific pavilion with massive participation from suppliers across the globe”. Acknowledging that the domestic aftermarket is at its crucial phase of evolution, he added that component suppliers are showing greater interest in exploring this business space, which remains more attractive than the traditional channels of growth.
The Indian automotive aftermarket, estimated at Rs. 70,000 crores in 2018-19, is projected to grow at a CAGR of 8.5 per cent for the next few years and register Rs. 98,000 crores by FY 2023. The key growth drivers for the Indian aftermarket include the sizeable vehicle parc in the country and the growing, enhanced average life of vehicles with improvement in road infrastructure and enhanced sourcing of components by global auto giants.
“The Indian auto components industry is one of the biggest and strategically important from a global perspective. It is ready to realise new potentials from global markets. Identifying and facilitating right markets with new possibilities has always been our spirit at Messe Frankfurt through Automechanika.
– Mr. Michael Dehn, General Manager – Sales & Marketing, Messe Frankfurt Trade Fairs India Pvt. Ltd.
Apart from product expo and knowledge forums, the event also saw the organisers addressing the need for protection against product piracy and greater awareness on genuine products for road safety through ‘Messe Frankfurt against Copying’ campaigns and ACMA’s ‘Safer Drives’ respectively at the fair. The four-day trade fair did sharpen the appeal and prominence of the Indian automotive aftermarket and component industry, while also proclaiming India as a key market for the world.
In the following section, Team MOTORINDIA brings you an exclusive coverage of all major exhibitors, along with brief reports on their latest offerings that were on display and aftermarket business strategies, right from the floors of ACMA Automechanika New Delhi 2019.
AIAWA seminar on “Future Scenario of Automobile Service Industry”
Situating multi-brand comprehensive automobile workshops and allied services in the changing aftermarket scenario in India, the All India Automobile Workshops Association (AIAWA) organised a seminar on emerging trends and business propositions in this business space. The delegates discussed various ways and means to engage multiple stakeholders in the automotive service industry.
The National President of AIAWA, Mr. Vikrantt Mohan, while elaborating the association’s latest efforts in bringing together the independent workshop community towards better standardisation and quality services, said: “There is a greater scope for shared synergies between suppliers and aftermarket stakeholders”.
Mr. S. Muralidharan, President – Lucas Indian Service Ltd., delivered the key note address at the seminar.
Knowledge Forum: Indian auto component industry – Staying competitive with innovation and business transformation
At the sidelines of the trade fair, focused seminars dealing with pertinent topics related to the aftermarket industry were held. One such session threw light on the involvement of digitalisation for smoother operations, insights from big data analytics and use of artificial intelligence in the auto components industry.
Reflecting on key changes happening at the Indian automotive aftermarket, the expert speakers and industry delegates discussed on ways and means of fast tracking the growth, staying competitive with innovation and business transformation, changing consumer preferences, new market potentials arising out of aftermarket, and enhancing customer satisfaction in this space.
Notably, Mr. S. Muralidharan, President, Lucas Indian Service Ltd., discussed on the structural reorganisation that is happening in the aftermarket. While observing that aftermarket supply chain is undergoing delayering of existing setup with the advancement of digitisation and consumer demand, he said, “Fleets will have a greater say in the value chain henceforth, as they may setup their own garages and spare sourcing models, with direct contact with suppliers”.
“Roadside garages and workshops will face major heat, but they can survive the new age if they gear up to offer complete servicing solutions and satisfactory experience to their clients with a personal touch”, he added, while affirming that with more changes happen consolidation, and the ultimate beneficiary of an “organised automotive aftermarket” will necessarily be the end users.
Presenting on the theme ‘Innovating marketing and brand promotion for Aftermarket’, Mr. S. Siva Arvinth, President & Business Vertical Head – Aftermarket at Spark Minda, said: “In today’s world, brands are nothing but experiences… any brand is worthless if it fails to offer feel-good experiences to its consumers”. Observing that end users today seek added value in every purchases they make, he stressed on the need for automotive component brands to connect with the end users.
“It is those mechanics, retailers, distributors, etc., who interact with customers at the grass-root level. We have to connect with those stakeholders so as to establish a link with the end users in the value chain. With customer intimacy and value discipline, along with quality product expertise and efficient operations, aftermarket brands can transform their business to the next level”, Mr. Arvinth added.
Speaking on the newly arising potentials in the replacement market, Mr. Ashok Taneja, Managing Director, Shriram Pistons & Rings, said: “Component suppliers have not explored this market space to the fullest extent, which seems quite assuring in terms of stable revenue stream than ever before. We have to catch up to OEMs, who have already realised this and stepped up their aftermarket outreach”. He also emphasised on the need for the automotive aftermarket to attract best of the young talents to transform this sector.
In addition, a panel discussion on the roadmap for Industry 4.0. stressed on the need for component suppliers to embrace automation and digitisation across all their processes and supply chains so as to stay globally competitive. Other areas of discussions at the seminar included need for product standardisation and R&D investments, a calibrated approach in embracing e-mobility, and industry’s role in mitigating the menace of high road deaths and prevalence of spurious products in the country.
Adding to the series of seminars, a conference along with International Purchasing Office (IPOs) Forum on ‘Aftermarket Global Trends and Opportunities’ was hosted. The conference aimed at shedding light on the sourcing strategies of global OEMs for aftermarket, along with aftermarket opportunities in the US, Latin America, Europe and Africa for Indian suppliers.