The ties between India and Germany in the automotive space have been very strong for decades and continue to grow at a healthy pace. Many segments in the Indian auto industry have significant presence of German automobile manufacturers, not to mention, the strong German representation in the auto component industry as well.
As we enter a special section focusing on the Indo-German automotive sector, we present you excerpts from an email interaction with Mr. Bernhard Steinruecke, Director General, Indo-German Chamber of Commerce. Prior to his current role, Mr. Steinruecke has been a Director on the Board of leading automotive companies such as FAG Bearings India Ltd., and Bosch Ltd. and other German companies in other sectors in India. He comes with vast knowledge on the automotive sector and the Indo-German trade relationship.
The Indian automotive industry is going through rapid transformation and growth, mainly driven by stable economic growth. Could you please give your views on the German auto companies’ contribution to this trend?
The German automotive companies Mercedes, BMW and Audi have a market share of over 80 per cent in the Indian luxury car market. In the middle segment the VW group brand SKODA was one of the first to present more affordable options to the Indian middle class. And VW with its Polo and Vento cars is one of the fastest growing brands in the entry segment of the market.
Many German auto firms have already been active in India over a long period. How is the current trend?
Most of the German car manufacturers in India foresee a further growth and thus have expansion plans.
The German automotive industry believes in India’s huge potential as a major automotive market. Can we expect German companies to continue focusing on the Indian market?
For the German automotive industry, India is one of the largest growth markets globally and the German component manufacturers as well as the OEMs have a strong focus on the Indian market.
As the German manufacturers and suppliers are technology leaders with a special focus on clean diesel, have you taken any fresh initiatives to tackle environmental issues in India?
German car manufacturers are known to be leaders when it comes to environmental friendly technology. Also in India the German automobile companies will be market leaders in fuel-efficiency and emission standards.
According to India’s Automotive Mission Plan (AMP), the automotive sector gets a special thrust on electro-mobility. What type of collaborative measures are taken by German companies in this field?
One focus topic of the intergovernmental Indo-German auto joint working group is electro-mobility. Here the German industry, the government and the automotive associations are contributing with their latest know-how in the field of electro-mobility.
The automobile sector in particular seems to be an important one to be covered under the free trade agreement (FTA) between India and Germany. What is the current status?
Due to the elections in India the negotiations on a EU-India free trade agreement are on hold. In this agreement the automotive industry plays a major role.
In the fourth quarter of 2013, the order bookings in the German machine tool industry fell by six per cent compared to the final quarter of 2012. How far has it impacted India?
The decline in the booking of German machine tools is also reflected in the decline of German exports to India in the last year. This decline primarily happened in the forming sector because of a consolidation in the automotive industry. Main orders had been commissioned and projects were finalised. The trend though in the last quarter was already indicating a turn-around and for the next year the industry is expecting a growth of 10 per cent.