A special study conducted by the Automotive Component Manufacturers Association of India (ACMA) with the theme “Winning with Quality and Innovation” was released at its 56th Annual Session & National Conference held in New Delhi on August 30. The study revealed that in order to stay competitive the auto component industry will be required to develop capabilities for in-house design, harness frugal engineering and create product differentiation through innovations. A move towards product and process innovation as well as an organisation-wide culture of quality and innovation will be integral to this change.
Addressing the Annual Session, Mr. Anant Geete, Minister for Heavy Industries & Public Enterprises, said: “The auto component industry has displayed excellent performance in the last decade. The growth has generated tremendous employment opportunities for India’s population, of which youth constituted 55 per cent. The automotive industry will be the primary contributor to the growth of the manufacturing sector and to the ‘Make in India’ programme. Therefore, we will help resolve all issues and concerns of the automotive industry by giving it our full support. With the implementation of GST, it will further boost the prospects of the industry.”
In his address, Mr. Nitin Gadkari, Minister for Road Transport & Highways, said: “This year the automotive industry had a satisfactory performance by achieving an overall growth of 8 per cent with exports of Rs. 70,000 crores. In the coming years the Government focus will be to adopt economic policies that are conducive to the growth of the industry and help strengthen exports. Innovation, technology and quality will be the three main pillars for the industry’s competitiveness. We have the potential to grow exponentially from the current Rs. 4.5 lakh crores to Rs. 20 lakh crores in the next 10 years, making us one of the world’s foremost.
Outlining the road map for the auto component industry, Mr. Arvind Balaji, ACMA President, and Joint Managing Director, Lucas-TVS, said: “The Indian auto component industry is at a point of inflection, and quality and technology will be the key differentiators for the industry’s competitiveness. Globally, the automobile landscape is undergoing a rapid change with the integration of digital and intelligent technologies in vehicles, much higher consideration for environment protection, reduction of fossil fuels, enhancement of safety features and changing user preferences. Additionally, the concept of digitization of the manufacturing sector is fast emerging. Changes such as these and others will have to be addressed by the auto component industry by investing significantly in R&D and creation of new products.”
Further, as OEMs consolidate their platforms as also their supply base, globalisation is an imperative for the component sector, not only for reasons of competitiveness but also for survival, he added.
Expressing optimism, Mr. Rattan Kapur, ACMA Vice President, and Chairman & Managing Director, Mark Exhaust Systems Ltd., said: “We as an industry have to graduate from one that merely ‘builds from print’ to one that ‘innovates and experiments’. To achieve this, the component industry needs to strengthen its relation with its customers, i.e., the OEMs, to become co-development partners. This calls for ‘sharing-risks’ in new areas, especially those related to technology and product development.”
In his keynote address, Mr. R.C. Bhargava, Chairman, Maruti Suzuki India, emphasised: “The auto component manufacturers need to have a singular focus to scale up their businesses with quality and technology as the bedrock. The industry needs to invest in design and capability, as also in world class testing and manufacturing facilities, improve profitability of operations to order to become integral to the global supply chains.”
Speaking on the theme of Quality and Innovation, Mr. Guenter Butschek, Chief Executive Officer & Managing Director, Tata Motors, said: “The Indian auto industry is going through a very dynamic phase and is witnessing a dramatic shift in landscape for the auto components industry. Quality and Innovation are the cornerstones for success in today’s business environment and at the core of Tata Motors’ new mission and vision, along with a continued focus on R&D investment in design and engineering. We at Tata Motors are looking to streamline our supply chain operations and focus on suppliers with comprehensive capabilities and high performance levels in areas of technical know-how, quality, cost, delivery and financial health. We will be rolling out a new supplier capability assessment process with the intention to bring synergies and efficiencies in the whole ecosystem and create win-win situations for both Tata Motors and the supplier fraternity.”
The eminent speakers at the ACMA Annual Session included Mr. Vinod K. Dasari, SIAM President, and Managing Director, Ashok Leyland, Dr. Naushad Forbes, President, CII, and Co-Chairman, Forbes Marshall, Mr. Girish Shankar, Secretary, Department of Heavy Industry, Mr. Rajan Wadhera, President & Chief Executive – Truck & Powertrain, Head – Mahindra Research Valley, Mahindra & Mahindra, Mr. C.V. Raman, Executive Director (Engineering), Maruti Suzuki India, Dr. Christian Brenneke, Vice-President – Product Engineering, WABCO Inc., and Mr. Malo Le Masson, Head – Global Product Planning, Hero MotoCorp, Mr. David Keeling, Senior Partner, McKinsey & Company, India, and Mr. Shivanshu Gupta, Partner, McKinsey & Company.
Rattan Kapur appointed ACMA President, NK Minda Vice President
The Automotive Component Manufacturers Association of India (ACMA) has announced the appointment of Mr. Rattan Kapur, Chairman & Managing Director, Mark Exhaust Systems Ltd., as its President, and Mr. Nirmal K. Minda, Chairman & Managing Director, Minda Industries Ltd., as Vice President for 2016-17. The announcement was made at the 56th ACMA Annual Session held in New Delhi.
