Discussions are being held to improve understanding of challenges faced by the local industry and how ACMA could address matters through interventions and programs.
Indian auto sales continues to be under pressure from high interest rates, inflation, volatility in the currency, cost of raw materials, price of crude oil, lack of direction in fuel policy and uncertain customer confidence.
Harish Lakshman, President ACMA said, “The automotive industry is one of the key drivers of the Indian economy. The turnover of the auto component industry in FY 2013 was USD 39.7 billion, considering the performance of the component industry mirrors that of the vehicle industry, we expect a marginal growth for the industry for FY 2014. Going forward, we expect the growth to return to the industry sometime in the third quarter of FY 2014, once a new government stabilises, post the elections”.
“Considering the rupee has significantly depreciated against the US Dollar, this has aided India’s exports which stood at USD 9.69 billion in CY 2013,growing 4.4% over the previous year; till such time the US dollar continues to be at Rupees 56 or above, we believe it will be favourable to be components exports”, added Mr Lakshman.
Karan Avtar Singh Principal Secretary, Department of Industries & Commerce, said, “Punjab is one of the most vibrant engineering and auto component manufacturing hubs in India; Inherent competitive advantages have rendered Punjab as a leading state in this arena. The State Government will be happy to engage with ACMA and the Automotive Industry to define an Automotive Policy conducive to the industry.”
Mr US Ahuja, Chairman, ACMA MSME Committee, said, “These are difficult times for the component sector and we are encouraging our members in the region to focus on improving internal efficiencies as well as skilling people. The ACMA cluster programs offer an ideal road map for improving productivity and quality and should be effectively deployed to make the industry competitive.”