ACMA’s 57th Annual Session focuses on ‘Future of mobility in India – Challenges & Opportunities for Auto Component Industry’

Automotive Component Manufacturers Association of India (ACMA), the apex body of the country’s auto component industry hosted its 57th Annual Session & National Conference on September 8, 2017, in New Delhi, on the theme ‘Future of mobility in India – Challenges & Opportunities for Auto Component Industry’.

Dignitaries presenting the Study Report on ‘Future of E-mobilty’ at the inaugural of the 57th ACMA Annual Session in New Delhi

The Annual Session was addressed by senior government officials and eminent leaders from the automotive industry which included Mr. Vishvajit Sahay, Joint Secretary, Department of Heavy Industries, Government of India, Mr. R.C. Bhargava, Chairman, Maruti Suzuki India Ltd., Dr. Abhay Firodia, President, SIAM, and Chairman, Force Motors, Ms. Shobhana Kamineni, President, CII, and Executive Vice Chairperson, Apollo Hospitals, Prof. Ashok Jhunjhunwala, Principal Advisor, Ministry of Power & New and Renewable Energy, Government of India, Mr. Rattan Kapur, President, ACMA, and Chairman & Managing Director, Mark Exhaust Systems Ltd., and Mr. Nirmal Minda, Vice President, ACMA, and CMD, Minda Industries.

ACMA’s study conducted by McKinsey & Co. themed “Future of E-mobilty” was released by the Chief Guest, Mr. Vishvajit Sahay along with other luminaries. The study revealed that globally, majority of experts believe that the auto industry will be disrupted with trends like shared mobility, autonomous driving, connectivity and electrification in our future vehicles. These trends will have a major impact on the value chain, resulting in market shift and revenue pools. The role of OEMs and suppliers will fade by 2030, leading to an emergence of new players, gaining a significant share of revenues and profits of the automotive industry. The driving force towards this change in mobility will be collaboration and innovation with auto suppliers.

On the occasion, Mr. Vishvajit Sahay said: “The auto industry plays an important role in contributing to the country’s GDP where it contributes 7.1% and out of this auto component contributes 2.1% upwards. The Indian automotive industry is poised to change now. We need to view this change as an opening of new opportunities. For this the industry needs to be not only technology-ready, but also capacity-ready. To be able to succeed in doing so we need to acquire & train the workforce while creating new avenues for skill development as well. The government expects the automobile industry to act as the prime contributor to the Make in India movement and is ready to support the industry in every possible manner.”

Mr. Rattan Kapur expressed optimism while sharing his views on e-mobility: “We at ACMA believe that while the future is electric, the logical progression would be to move from IC-engines to hybrids and then to fully-battery based vehicles. This will provide the local industry with the opportunity to develop and best acquire technologies for the future generation of vehicles. A long-term stable technology-agnostic roadmap for the automotive industry driven by a sound regulatory framework is therefore the need of the hour so that the industry can invest for sustainable growth and development, in line with the aspirations of all stakeholders.”

Mr. Kapur went on to add: “There is a fundamental need to preserve the environment for our future generations and are committed to it. For the auto component industry this may imply drastic changes for many individual players. Time has come for each of us in the industry to accept this new business environment and gear ourselves to cater to the new demands of the future.”

Commenting on the future of mobility, Dr. Abhay Firodia said: “Today, we stand facing a massive technological transformation which is coming our way. This leap towards e-mobility is bound to happen sooner or later; the correct way to do it would be a gradual transition. Policy environment should lead to the betterment of the nation and its customers. These new technologies already exist and are reasonably mature and can be implemented in a matter of few years but the industry needs clarity so that both OEMs and auto component manufacturers could plan for the change accordingly.”

In his keynote address, Mr. Bhargava emphasised: “As the vehicle population is increasing, the need to import the crude oil is also increasing. Crude oil being a non-renewable resource is limited in nature, thereby, building a need to shift to a more sustainable and environment friendly alternative. It is in our government’s long term interest to accept Electric Mobility as an alternate means of transport and we as an industry need to acknowledge the challenge to make it happen. However, there are a few challenges, which need to be addressed before we embark on the journey of electric mobility for India. Firstly, battery is the main element of electric vehicles and it is the low cost of battery that will determine the sales of the vehicle and secondly, the charging infrastructure should be available for the convenience of using the vehicle. The government of India is also strategizing on an innovative idea of battery swapping which needs to be looked upon. To make this shift, we need to work together with the government and see what impact does the EV policy has on its customers in the future.”

Launched at the Annual Session, the McKinsey study revealed that ‘E-Mobility’ is already shaping the automotive industry around the world and in India. The transition will happen from Internal Combustion Engine (ICE) to Hybrid Vehicles to Battery Electric Vehicles (BEV). This trend is more visible in 2-wheelers, 3-wheelers and passenger vehicles, however commercial vehicles, tractors and MHCVs will take longer for the transition. On the dimension of innovation, the best should be extracted out of internal and external partnership sources. Also, all stakeholders should work together to formulate policies that support indigenous development of technology over import dependence. The need of the hour is sustainability over speed.

The 57th Annual Session & National Conference concluded on a high note drawing participation from over 1,300 participants. Eminent speakers from the industry and government graced the event including Dr. Pawan Goenka, MD, Mahindra & Mahindra, Mr. Vikram Kasbekar, Executive Director, Hero Motocorp, Mr. Thomas Flack, Chief Purchasing Officer, Tata Motors, Mr. Jan O. Röhrl, Chief Technology Officer and Head of Mobility Solutions – Business India and Additional Director, Bosch, Mr. Jayant Davar, Co-Chairman & MD, Sandhar Technologies, Mr. Ashok Taneja, MD & CEO, Shriram Pistons & Rings, Mr. Arvind Balaji, Joint MD, Lucas TVS, Prof. Matthias Busse, Director, Fraunhofer Institute for Manufacturing Technology and Advanced Materials (IFAM) & Fraunhofer Systems Research Electromobility, Mr. Shivanshu Gupta, Partner, McKinsey & Company (India), and Mr. Russell Hensley, Partner, McKinsey & Company (USA), who made the session a highly engaging one with their insightful and thought-provoking talks and discussions.

In the case of India, four key forces could determine the future E-mobility landscape:

  • Regulations and incentives: Many countries have promoted e-mobility through a range of incentives, but these alone did not drive EV penetration. A supportive ecosystem that also establishes strict regulations on carbon emissions indirectly prompts the higher adoption of EVs.
  • Technology: Improved technology can reduce battery costs, increase efficiency and driving range, making EVs more accessible and attractive to potential customers.
  • Infrastructure: Easy and affordable access to charging infrastructure – both standard AC charging as well as rapid DC charging – is a key to meet customer needs.
  • Customer demand: Creating a pull among customers by creating an economical cost proposition will be crucial in encouraging customers to invest in EVs.

Nirmal K. Minda takes over as ACMA President

Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s auto component manufacturing industry, announced the appointment of Mr. Nirmal. K. Minda, Vice President, ACMA, as the President of ACMA and Mr. Ram Venkataramani as the Vice President, ACMA for the term 2017-18. The announcement was made at the 57th ACMA Annual Session during its Executive Committee meeting.

Announcing the new President, Mr. Vinnie Mehta, ACMA Director General, said: “We are pleased to announce the appointment of Mr. Nirmal K. Minda as ACMA President. Mr. Minda is an industry veteran who brings in a wealth of knowledge with a strong background in automotive industry”.

Mr. Nirmal K. Minda is the Chairman & Managing Director of UNO Minda Group. He is an industrialist with a rich business experience of more than three decades in the auto components sector. He has been instrumental in forging new alliances and joint venture partnership with globally renowned names.

Leading the $875 million UNO Minda Group, Mr. Nirmal Minda, has various laurels to his name. “Haryana Ratna Award” has been bestowed upon him for his professional and social achievements. Under his dynamic leadership, the group has grown manifold, established footprints across the globe and has received numerous awards and recognitions.

He held many offices in bodies like CII as Ex. Vice Chairman, Haryana State Council & Special Invitee, Northern Regional Council. He has served as Vice President, ACMA, for 2016-17 and prior to this as the Chairman of ACMA, Northern Region.