The second edition of Automotive Component Manufacturers Association of India’s (ACMA) Automechanika New Delhi, one of the largest aftermarket exhibitions in the country, was held on a grander scale at Pragati Maidan. Mirroring the return of growth in the automotive sector, the show witnessed an enthusiastic response from auto part majors and aftermarket and business visitors. The exhibition, which featured a total of 436 participants from India and foreign contingents from Brazil, China, Germany, Hungary, Indonesia, Italy, Japan, Korea, Malaysia, Poland, Spain, Taiwan, Thailand, the UAE, the UK and the US, saw key industry players expressing satisfaction on the government’s budget focus on infrastructure development including roads and power, education, skilling, ease of doing business and attracting investments.
The exhibition covering an area of 16,000 sq. m., which included ‘New Product Display’ areas for the latest speciality items, auto components and aftermarket accessories, provided visitors an ideal meeting ground with aftermarket players to learn about the opportunities and procure genuine auto parts, core component technologies and hi-performance aftermarket products from world-leading manufacturers and suppliers. With over 20 companies choosing this platform to unveil new products and component lines, ACMA Automechanika became an ideal showcase for new products and technologies for the aftermarket sector. Around 12,861 business visitors from India and abroad visited the show, creating a new record in comparison to the last edition of the show in 2013. Several exhibitors and trade visitors have confirmed on closing sizeable business deals during the fair.
Besides speciality products, the exhibition had auto components and innovative aftermarket accessories displayed by leading manufacturers from India and a host of countries, including Brazil, China, Germany, Hungary, Indonesia, Italy, Japan, Korea, Malaysia, Poland, Spain, Taiwan, Thailand, the UAE, the US and the UK.
Eminent industry leaders from the industry and government graced the inaugural ceremony, which was officiated by Dr. Rajan Katoch, Secretary, Department of Heavy Industry, Ministry of Heavy Industry & Public Enterprises, who was the Chief Guest on the occasion.
Addressing the gathering Dr. Katoch said: “The Indian automotive aftermarket is at an inflection point where the aftermarket offers a promising future, but the opportunities that arise will come with their share of challenges. Therefore, the Indian auto component industry must develop and cultivate an organised automotive aftermarket supply chain for the industry and integrate with the service and repair segment”.
Outlining the opportunities in the Indian aftermarket industry, Mr. Ramesh Suri, ACMA President, said: “The Indian automotive component aftermarket industry clocked a turnover of Rs. 36,000 crores ($6 billion) in 2013 and is projected to touch Rs. 77,000 crores ($12.85 billion) by 2020. The Indian aftermarket industry recorded an impressive cumulative growth rate of 15 per cent in FY14. This year we expect the overall component industry to grow in a single digit while the aftermarket will continue to grow in double digits.”
In his address, Mr. Michael Johannes, Vice President, Brand Management Automechanika, Messe Frankfurt Exhibition GmbH, said: “ACMA Automechanika New Delhi, with its unrivalled and broad spectrum of products, covers the value chain of the automobile industry in its entirety and offers a specialised platform for business networking between local suppliers and global manufacturers. With industry majors as well as many new companies and country pavilions this year, there is a lot to discover and explore for trade visitors.”
At the exhibition, ACMA’s ‘Asli Naqli’ Pavilion and the ‘Messe Frankfurt Against Copying’ campaign not only aimed at educating aftermarket professionals on the disadvantages and risks involved in using fake parts for vehicles, but also allowed visitors to evaluate parts and components and distinguish the real from the fake, in order to make well-informed procurement decisions.
New offerings
ACMA Automechanika New Delhi also saw numerous companies making their product launches, as well as expanded displays of their product portfolios. Some of them were new battery-operated three-wheelers, self-recovery winches, cleaners for diesel particulate filters, chains and sprocket kits, ignition coils, tyre repair products and rear wheel hub bearing units. The other new launches included new rocker arm assemblies for tractor engines, engine valves for CNG three-wheelers, heavy-duty electrical portable nut runners, PTO assemblies and gear boxes.
A special mention must be made of the battery-operated three-wheeler from U.P. Telelinks Ltd., IP 68 waterproof “Seal Gen2 Series” self-recovery winches from Comeup Industries Inc., LPR s.r.l.’s EasyKit that allows mechanics to replace old parts all at once, and an economical alternative for replacing clogged diesel particulate filters from LIQUI MOLY.
Companies like Trinayana Auto Pvt. Ltd., Autoways India, Shahii, ISK Bearings Industries, BLW Engine Valves Ace Car Tech Pvt. Ltd., California Scents, Ideale Reman, Him Teknoforge Ltd., Driveline Brakes Pvt. Ltd., and Ashar Lockeys Pvt. Ltd., also unveiled their new product lines.
The expo also concurrently featured a business conclave where Indian and overseas experts from the industry imparted knowledge to aftermarket players of the latest developments and best practices. Speakers gave a presentation on different topics, including evolving the technological needs of future vehicles, the requirements of OEMs and the management of cost of innovation.
A round-table of panelists, including component manufacturers, anti-counterfeiting experts and aftermarket players, gave a perspective on industry best practices and pre-requisites to become a world-class player, as claimed by ACMA.
On the sidelines of the exhibition, ACMA also launched the first ACMA Global MSME Summit: “Make in India – Evolving Manufacturing through Globalization”, which focussed on Indian small and medium enterprises and the evolution of global MSMEs in terms of entrepreneurial ability, technology upgradation and innovation. The session also gave an opportunity to understand business openings in adjacent industries like Off-Highway Vehicle, Urban Transport System, Defence (Indigenization) and Agricultural Machinery.
Additionally, ACMA unveiled a Directory of potential Importers of Aftermarket Parts & Accessories across 18 countries. This is yet another ACMA effort at enabling global outreach of its members and capturing the huge upside opportunity in the aftermarket.
Bosch Automotive Aftermarket
Bosch Automotive Aftermarket, the exclusive platinum sponsor at the event, showcased the best of its mobility solutions. On display were its comprehensive range of automotive products such as Diesel Fuel Injection Systems, Common Rail Systems, Gasoline Systems, Filtration Systems, Braking Systems, Lighting Technology, Wiping Systems and Lubricants among other products for the aftermarket segment; Spark Plugs and Filtration for the OE segment. Additionally, the division showcased India’s largest multi-brand vehicle service network – Bosch Car Service and Express Bike Service. Also on display, were the wide portfolio of diagnostic automotive service solutions targeted at OEMs, dealerships, workshops, fleets and technicians and included diagnostic and test equipment, repair and training solutions, IT-enabled tools for OEMs and the service bay, as well as the connected cloud services.
“ACMA Automechanika provides Bosch Automotive Aftermarket division a platform to showcase the best of its mobility solutions offering. India’s auto aftermarket business is poised for a great future and we want to position ourselves as the partner of choice for the industry’s need for parts, bytes and services,” said Mr. Guenter Weber, Regional President, Automotive Aftermarket, Bosch Ltd.
“Bosch has introduced several global products in India, such as Electronic Stability Program (ESP), Anti-lock Braking System (ABS) and Traction Control System (TCS). As the Indian market matures, we will be bringing in more global products targeted at the Indian consumer. ” he added further.
ZF Services
ZF Services, the aftermarket division of ZF, had a major presence, in line with its participation in the previous edition of the event two years ago. The company, a Gold Partner, displayed its extensive range of products and solutions, showcasing its aftermarket expertise and strengths across different vehicle segments. Said Mr. Markus Wittig, Regional General Manager, Aftermarket Asia Pacific (OES/IAM), ZF Asia Pacific Pte. Ltd.: “Asia Pacific continues to be a key market for ZF from a global perspective, and we are keen on expanding our presence in India. This year at the show, we are showcasing our wide range of solutions and are looking to build our brand so that the market, dealers and workshops understands ZF and what our product brands Sachs and Lemförder stand for”.
ZF Services is focused on growing its presence in India and is optimistic about tapping the growing aftermarket segment in the country by providing innovative OE quality products and technical services for passenger car, commercial vehicle and off highway segments.
Setco Automotive
Setco, one of the Gold Sponsors, used the excellent platform at the show to build on its recent foray into the aftermarket space. Having a dominant position in the M&HCV clutch segment, Setco had entered the aftermarket business around 18 months ago and has received excellent response from the market as it continues to make inroads in the segment with its LIPE branded clutches.
“The response at the show this year has been much better than the last edition two years ago. The advantage at this event is that the people who visit are serious business visitors and genuine buyers, so the conversion ratio is very good. We take this as a very good opportunity to showcase our presence in the aftermarket segment and plan to build on the excellent response we have received from the market”, said Mr. J.S. Gujral, Vice President – Commercial, Setco Automotive Ltd.
Delphi Product & Service Solutions
Delphi Product & Service Solutions (DPSS) showcased its strength in the aftermarket and services space at the show. Mr. Faisal Matin, Country Director, India and Sub-Continent, DPSS, said: “This year we saw a significant increase in attendance at our booth. The show provided an excellent opportunity to meet customers and technicians to discuss how our product and services can meet their needs. DPSS will expand its chassis offering by introducing steering & suspension portfolio to the Indian aftermarket. This launch will include more than 225 new-to-range parts in 2015”.
DPSS is focused on strengthening its presence in the Indian aftermarket by implementing product strategies that deliver maximum coverage for each product portfolio including fuel and engine management systems, diesel, chassis, thermal and maintenance parts to its customers.
Mansons International
Mansons, the exclusive lanyard sponsor, put out its whole range of axle, steering, suspension, fifth-wheel, and body components for the domestic truck and trailer aftermarket sector. The Indian firm has been a regular at Automechanika shows across the globe and continued its run of successes at the event, receiving very good response to its products. Buoyed by a strong run in business, both on the domestic and export fronts, including the domestic aftermarket segment, Mansons almost doubled its stall space at the fair compared to the previous edition.
“The show has been excellent in terms of response. This show is more about the independent aftermarket and people are curious about what Mansons can deliver for the independent aftermarket space. Business is going good at our end with nearly 30 per cent this year overall and 50 per cent growth in the domestic aftermarket in particular. We have appointed 45 distributors across the country and are looking to expand it to 200 by the end of 2015 (calendar year)”, shared Mr. Gautam Khanduja, Director, Mansons International Pvt. Ltd.
Elofic Industries
Elofic Industries exhibited its filters and lubricants for all vehicle segments ranging from two-wheelers to earthmoving equipment. Mr. Pawan Sharma, Vice President, Domestic Business, Elofic, shared: “ACMA Automechanika benefits participants like us in terms of huge promotion to our business and brand. Apart from showcasing our brands, technology and new product range, we also get to reach out to decision makers directly. The show provides a common platform to meet clients and exhibit new products and we look at it as an excellent opportunity to learn about the latest developments on ideas and technologies in the industry.”
ANG Industries
ANG Industries, one of India’s largest manufacturers and exporters of HCV components, agricultural components and weldments was a Gold Sponsor at the show. The company showcased its wide range of offerings in different product categories, for varying customer segments. Mr. Premjit Singh, Founder and Managing Director, ANG Industries, said: “Our competence lies in the forged, CNC-machined, assembly and heat treatment of automotive components for specialized applications. We are one of the largest manufacturers in the country of these components used in the manufacture of trailer axles, transmissions and air-brake systems. A world class exhibition like Automechanika perfectly fits the bill for us to take our company to global heights. We are very happy with how things have proceeded at the event”.
Liqui Moly-Anand Automotive
Mr. Mahendra Goyal, Group President – Aftermarket and Business Group III
Liqui Moly GmbH, a leading player offering a wide range of high-quality products such as motor oils, additives, vehicle care products and service products, announced its co-operation with Ansysco, an Anand Automotive Group company, in order to expand its reach and gain significant market share in India. The companies launched products which are exclusively manufactured in Germany and will be catering to multiple segments in the domestic automotive industry.
“This lays the foundation for our future success in India. Basically we offer everything regarding automotive chemicals. Workshops and car dealerships are to benefit from our German know-how and from our experience of more than 50 years”, said Mr. Michael Karl, Export Area Manager at Liqui Moly who is responsible for the business in India.
“Anand Group and Liqui Moly partnership for motor oils and additives along with car care products; service products will certainly help us to expand our product range in India”, added Mr. Mahendra Goyal, Group President – Aftermarket and Business Group III.
Sigma Corporation
Sigma Corporation India Ltd., manufacturer of engine and transmission mounts, bushes, CV boot joints and exhaust rubber hangers for worldwide OEM applications as well as aftermarket, made a big presence at the event. The 50-year-old firm, which offers a vast and diverse range of auto components, displayed its extensive range of qualitative and competitively-priced products for the aftermarket.
Mr. Preet Singh, Vice President, Corporate Marketing, Sigma Corporation India Ltd., said: “We are Asia’s leading manufacturer of automotive rubber molded components for global after markets. We are keen to bring in our line of anti-vibration-rubber parts, strut mounts and kits for the Indian aftermarket and feel ACMA Automechanika New Delhi offers a perfect platform for us to showcase our products for the domestic aftermarket.”
Ample Auto Tech
Ample Auto Tech Pvt. Ltd. (ATEK), leading manufacturer and exporter of steering and suspension parts, took part in the fair with a view of enhancing its presence in the domestic market. The Delhi-based company, a Silver Partner at the event, evoked good response from visitors for its various products. Mr. Arvind Choudhary, Managing Director, ATEK, stated: “We have had a very good show this year. We have progressed to become a prominent supplier of automotive parts for European, Japanese, Korean, Asian and American applications and going forward, we will maximise our presence in the domestic aftermarket space. That is why we decided to showcase out products at ACMA-Automechanika and are happy with the kind of response we have received. We have established ourselves as a brand that prides in excellence in quality and believe in serving our customers by providing them quality products at competitive prices.”
ACMA Automechanika to get bigger and better in 2017
With the latest edition of ACMA Automechanika becoming a runaway success, as reflected in the exhibitor count, visitor footfall and overall feedback from various stakeholders, Messe Frankfurt has already begun work on making the next edition of the show even better. We spoke to Mr. Raj Manek, Managing Director, Messe Frankfurt Trade Fairs India Pvt. Ltd., and Mr. Michael Johannes, Vice President – Brand Management Automechanika, Messe Frankfurt Exhibition GmbH, to find out their future plans for the event and the infrastructure upgradation required to make it happen.
Can you tell us about the journey of Messe Frankfurt in India?
Raj Manek (RM): Well, Messe Frankfurt has been India since 1998 but nothing significant happened in the initial phase. Even though a lot of Indian companies participated at overseas Automechanika shows, no country specific event happened here. So when I joined as the Business Development Director, I took the challenge of hosting a show of similar scale in India. So after taking over as the Managing Director, we began with no shows to 15 annual shows in India. So I am pleased to tell you that we became a leading exhibition firm within three years of heading the operations. And for a show like Automechanika, which didn’t exist, has now become the most professional and leading exhibition for the automotive aftermarket industry. From an international as well as local perspective to the look and feel of the show as well as to the way it has been professionally managed, this event has become a force to reckon with. Moreover, we are very clear about the kind of business visitors who would be walking in at the show. India being a vibrant place and is changing, we are using the strength of Messe Frankfurt to have a presence here. And shows like this will help India grow.
You have been categorical in pointing out that we need world-class exhibition centres in this country to host such internationally acclaimed events. Do we see any changes on that front?
RM: We are in active talks with the government. There’s a committee called UFI, which is a committee of exhibition and venue owners, talking to the government for about 18 months now for (setting up) a venue in India. All the big boys of the exhibition industry like Hannover Messe, UVM, Reid Exhibitions, etc., are part of this committee. This is because it increases the economy of the city it is in and indirectly employs a lot of people involved in the event. So things are rolling in the right direction and I am hopeful we will be able to come out with a resolution. If they can manage to do it in a city like Ahmadabad in 8 months, I see no reason why it cannot be replicated in Delhi. With an ex-Gujarat CM heading the government, I am confident that it will surely happen. So once we have a state-of-the-art exhibition centre, an event like Automechanika can certainly gain a lot of eminence.
Messe Frankfurt’s exhibition grounds span across 578,000 sq. metres and are home to 10 exhibition halls. But at Pragati Maidan the gross exhibition space is merely 16,000 sq. metres. What steps are you taking to expand the show size and scale?
Michael Johannes (MJ): First of all, you should know that Automechanika was started back in 1971. So it has a history of 40+years. But over here we have an experience of only two years. Of course we need to work on some improvements but you have to know that for our customers, it is always to have the marketplace. So the automotive aftermarket in India is increasing and as my colleague Raj Manek pointed out, we need the right facility. Having said that, it is the Automechanika family and we have 14 shows in certain countries. We are having the right platform for the automotive industry aftermarket which means we need to bring together the sellers (exhibitors) and the buyers (visitors).
I think we have a lot of potential in India and we will increase the scale and size of ACMA-Automechanika in Delhi. We do have plans to take this event at a regional level which we are currently evaluating with our customers. The marketplace in India is right and we will demonstrate that the quality of products which is needed in the aftermarket is increasing as well. If the Indian companies improve their products’ quality, they are prepared for the worldwide market. The automotive industry is one of the few such ones which are really playing globally and acting locally. For us, it was a strategic move to present ACMA-Automechanika New Delhi in India and I think the success of this edition vis-à-vis inaugural one just shows we are on the right track.
Going forward, what specific themes would you be working on for Automechanika in India?
MJ: We will start with our primary focus on product categories and put this event in place. Thereafter, we will develop special interests in segments like e-mobility, etc. We are trying to bring the markets of America, Europe and Asia including India together. We are working on a concept to bring even more developments in India. We do it in a step-by-step manner. With the third edition, you will see a lot of additions and improvements and we are working constantly on that. To answer your question, we will definitely be working on themes like Sustainable Mobility, Safety or Security. When you talk about (themes like) safety, the government should also be supportive on aspects like curbing counterfeit products.
How do you plan to increase the exhibitor count at the show? What can we expect from the next edition of ACMA Automechanika?
MJ: We have 16,000 firms taking part at 14 shows by Automechanika’s held worldwide. If you look at our latest edition, at least eight out of the top 10 global firms have participated. Here we have just 425 (firms participating). We also have to make sure that the stakeholders involved should put this as an important event in their diary.
I can affirm that we have a much higher potential (in terms of exhibitors’ participation). But at the same time, we need a bigger venue in terms of more pavilions to bring in more companies. We had a waiting list (this time) and couldn’t fulfil the needs of our customers (companies). But we both (Raj Manek and I) are in close communication and we have some grander plans for 2017 edition. We are prepared and hope to get the support of a world-class venue for the next edition in order to have additional space available for ACMA Automechanika New Delhi.
Indian automotive aftermarket will double to $12 billion by 2020: ACMA
The Automotive Component Manufacturers Association of India (ACMA) is exuberant about the second edition of ACMA Automechanika which it co-hosted with Messe Franfurt. Despite recessionary trends, the success of the show goes to highlight the enormous potential of the Indian automotive aftermarket which is expected to double to $12 billion by 2020.
We spoke to Mr. Sandeep Balooja, Vice-President, ACMA, and President – Group Business Development & Member, Anand Management Committee, to know more about the Association’s growth strategy.
What are the key takeaways from the second edition of ACMA Automechanika New Delhi?
From ACMA’s perspective if you look at the total size of the venue, it has gone up from 8,000 sq. mtrs. to 16,000 sq. mtrs. The number of participants has gone up to over 400. So we are seeing a very positive response (to this show). With the buzz around Make in India, the enthusiasm which I am seeing from visitors and foreign participants is fabulous. This (event) has carved a niche in the aftermarket. The size of the domestic aftermarket industry is going up from $6 billion to $12 billion by 2020. This is the only segment which is going up by a CAGR of 15 per cent and opens up opportunities for any manufacturer who can offer products in the aftermarket not only in India but globally. Therefore, Automechanika is a major platform to showcase your products to even overseas visitors. I would look at it positively because we are seeing participants coming from overseas.
Not only can Indian manufacturers can look for overseas importers, they can also strike alliances with a foreign player to locally manufacture their products here. So a whole gamut of things can open up for the industry. In think this exhibition will definitely grow in the years to come. So from ACMA’s perspective, we have two major shows. One is of course the Auto Expo (now Auto Show), the other is the ACMA-Automechanika, which is gaining prominence.
What do you think are the current challenges in the domestic aftermarket? What are the steps being taken to tackle them?
The biggest challenge in the domestic aftermarket is the availability of sub-standard and counterfeit parts that can endanger lives (if used in a vehicle). We are in active talks with the Ministry to bring in a regulation on such products. So once there is enforcement across the country, including multiple raids, we can see how we can curb such malpractices. This is the biggest social step we are taking along with the government. We have been holding talks with government and have expressed our concerns with them. This is not only to serve our interests but for the larger interests of everyone. With the current buzz on make-in-India and safety regulations, we are in the right direction.
As ACMA allies itself with Automechanika, do you see a greater outflow of products from India or will there be a rise in the inflow of products here?
With the foreign investors coming in and the ‘Make in India’ initiative of the Government, the products will get increasingly competitive. There are 40 IPOs already being established by OEMs here. With foreign investors coming in, there will be more exports from India to markets worldwide. I think there will be a greater scope for aftermarket exports to go up. The industry itself is planning to export products worth $10 billion in the next few years. Even if imports flow in, there need to be certain quality standards meeting the specifications (of the buyers). This is something which both SIAM and ACMA are looking at. Our ultimate objective is saving human lives (through procurement of genuine parts). And the Government is equally keen to take this forward (with us).