The Indian auto component industry is undergoing a major transformation with the key factor being the consistent burgeoning of exports of auto parts. Exports of auto parts from India to Canada have doubled from $50 million in 2010 to $93 million in 2012. Going forward, the component industry’s focus would be to bring more innovation and research so as to make a strong offering to the business community across the world. The automotive manufacturing industry in Canada is one of the largest sectors which is export intensive, as the country ships three-quarters of its production every year.
With the introduction of high class technology in India, the component manufacturers have been able to be a part of the global supply chain. There is a positive vibrancy seen in the Indian economy showcasing the growing engineering and IT capabilities for designing and manufacturing, which is of utmost relevance to the Canadian automotive sector.
Interacting with MOTORINDIA, Mr. Steve Rodgers, President, APMA, spoke on the Indian auto industry, its global positioning and how the Canadian government eyes on trade relationships with the country.
He said: “India is a very important automotive market for us. We foresee India to become the sixth largest automobile producing nation in the world by 2019 by producing 6.1 million vehicles annually. Between now and 2019 India will grow by about 68 per cent in volumes. The trade relations between the two countries are good. At the G-7 meet, the Indian Prime Minister and his Canadian counterpart had talks on a few trade agreements and economic ties between the two countries.”
According to him, there are a few auto parts imported by India from Canada and a few exported from India to Canada. Exports from India include wiring harness systems, cable assemblies, window regulators, etc. There are 10 Canadian companies producing automotive parts in India. Also a few Indian companies have expressed their interest to set up units in Canada.
Mr. Rodgers also said that components are simple, cost effective and follow all safety guidelines. “Indian leadership has a global positioning regarding bus manufacturing and bus design development from low floor buses to highway buses. We are looking forward to working with some of them”, he added.