The Automotive Component Manufacturers Association of India (ACMA), the apex body of the Auto Component Industry in India, hosted its 55th Annual Session & National Conference in New Delhi on September 4. With over 1,200 participants, it was addressed by Union Ministers and functionaries from the automotive industry, such as Mr. Anant Geete, Union Minister for Heavy Industries & Public Enterprises, Mr. Jayant Sinha, Minister of State of Finance, Mr. O. Suzuki, Chairman & CEO, Suzuki Motor Corporation, Dr. Naushad Forbes, President-designate, CII, and Director, Forbes Marshall, Mr. Vinod K. Dasari, Managing Director, Ashok Leyland, and Mr. Ramesh Suri, ACMA President.
The theme of the Annual Session was “Make in India: How the Auto Components Industry can Make it Happen”. ACMA’s joint study with McKinsey on the topic revealed that there is urgent need for concerted action by automotive components manufacturers, automotive OEMs, automotive value-chain partners and policy makers in order to establish India as a global manufacturing and export hub and to attract investments worth $80-100 billion over the next decade to realise the Automotive Mission Plan (AMP) 2026 target.
The study also highlighted that the Indian auto component industry could reach $200 billion in revenue, and $80 billion in exports and contribute 10 per cent of India’s manufacturing GDP by 2026. To realise this goal the industry needs ensure skill development of the existing talent pool, hand hold the Tier-IIs & IIIs component manufacturers, increase the economic gains and strengthen India’s competitiveness as an investment destination for manufacturing by ensuring ease of doing business.
Addressing the session, Mr. Anant Geete said: “It is overwhelming to see the auto component industry crusading at high speeds towards the accomplishment of our vision of being among the top 3 globally. The entire component industry should come under the umbrella of ACMA so that concerted efforts by the Government positively impacts all.”
Expressing optimism, Mr. Jayant Sinha observed: “The auto component industry has and will contribute immensely to the growth of the automotive sector. I am happy to observe that the ACMA-McKinsey report has highlighted the ambitious target of growing the revenues of the auto component industry five-fold and make it an important export-oriented industry. I am confident that such initiatives will ensure that the industry overcomes the existing challenges and gets onto a growth trajectory, which will allow it to capture a sizeable market in the global arena.”
In his address, Mr. Suzuki said: “ACMA has been a key driver in the evolution of the auto component manufacturing industry in India. The industry will do even better if they add ‘Quality in India’ to the aspiring ‘Make in India’ initiative. The industry needs to focus more on delivering consistent quality and invest money in quality enhancements instead of diversification at this crucial juncture of its growth path. India has the potential of emerging as numero uno in the global auto component manufacturing space. Under the leadership of PM Narendra Modi, this sector will grow, and all leading global auto component manufacturers will enhance their presence in the Indian market.”
Mr. Ramesh Suri, ACMA President, added: “Today, the automotive and auto component industry accounts for around 40 per cent of Indian manufacturing. It is therefore not surprising that the ‘Make in India’ campaign, which is a blueprint to develop the country’s manufacturing, resonates well with ACMA’s roadmap of a vibrant auto component manufacturing global-hub in India. The performance of the Indian auto component sector, despite the challenges, has been quite satisfactory. Recent growth in auto component exports at 11.4 per cent is a clear indication of the growing credibility of ‘India made’ components in the global auto supply chain. ACMA has been instrumental in supporting its members in discovering and harnessing new opportunities worldwide, besides engaging with the Government to create a favourable business environment to implement it.”
The joint ACMA-McKinsey study titled ‘Make in India’ – Making it happen’ which was also the central theme of the session, was released on the occasion by Mr. Anant Geete.
The study suggested that the Indian auto component sector can ensure greater returns than the cost of capital through a nine-point agenda, and also highlighted that the industry eco-system and the Government can collaborate to make India an attractive manufacturing investment destination. ACMA, automotive OEMs and other value-chain partners can invest in improving the eco-system by promoting Brand India, creating competitive products (e.g., liability insurance), facilitating quality improvements, embrace digital services and promote competencies in the value chain.
The Government has to necessarily provide continued R&D and infrastructural support while exploring strategic trade agreements and making it easier to do business in India which currently has Free Trade Agreements (FTAs) with select countries around the world and Preferential Trade Agreements (PTAs) with many more. An increase in the number of auto components on the list of trade items in respect of PTAs and an auto components angle in negotiations with countries with India-like markets could help create a global market for Indian vehicle and auto component manufacturers.
The Annual Session concluded on a high note. Eminent speakers from the industry and Government such as Dr. Rajan S. Katoch, Secretary, Department of Heavy Industry, Ministry of Heavy Industries & Public Enterprises, Dr. Pawan Goenka, Executive Director & Group President (Automotive & Farm Sector), Member of Group Executive Board, Mahindra & Mahindra, Mr. Anant Talaulicar, Chairman & Managing Director, Cummins India, Mr. Ashok Taneja, Managing Director & CEO, Shriram Pistons & Rings, Mr. Harish Lakshman, Managing Director, Rane TRW Steering Systems, Mr. Claude d’Gama Rose, Managing Director, Continental Automotive Components (India), and Mr. Rajat Dhawan, Director and Mr. Shivanshu Gupta, Partner, McKinsey & Company, India, dwelt on the opportunities for the Indian auto component industry to lead the manufacturing sector and significantly increase its contribution to India’s GDP, helping in the process meet the ‘Make in India’ aspirations.
Arvind Balaji elected ACMA President, Rattan Kapur Vice President
The Automotive Component Manufacturers Association of India (ACMA) has announced the appointment of Mr. Arvind Balaji, Joint Managing Director, Lucas-TVS Ltd., as its President, and Mr. Rattan Kapur, Chairman & Managing Director, Mark Exhaust Systems Ltd., as the Vice President for 2015-16.
Making the announcement, the ACMA Director General, Mr. Vinnie Mehta, said: “We are pleased to welcome Arvind Balaji as the new President ACMA. Being from the automotive and finance background, Arvind Balaji brings in a wealth of knowledge to steer the association. We are also glad that Rattan Kapur, a renowned industry veteran is taking over as Vice President.”
Accepting the new responsibility, Mr. Arvind Balaji said: “I’m deeply humbled and honored to be appointed as President of ACMA, which is the apex body representing the interest of the Indian auto component industry. I take this as an opportunity to add value – build and expand the operations in the right direction to help the industry achieve its ‘Make in India’ aspirations.”