This last decade has seen a number of Indian suppliers evolve through world-class technical capabilities. Certain suppliers have become recognisable global suppliers. ACMA’s joint study with McKinsey on ‘Capturing the global opportunity – The next imperative for the Indian auto component industry’ emphasises that Indian suppliers only account for 1% of overall global exports of USD 1006 billion.
It points to great opportunity for exports. Nitin Gadkari, Union Minister of Road Transport & Highways (MoRTH), Anant Geete, Union Minister of Heavy Industries & Public Enterprises, Sumit Mazumder, President- Designate CII, and Chairman & MD, TIL and Mr Vikram Kirloskar, President SIAM & Vice Chairman, Toyota Kirloskar were in attendance.
Vinod Dasari, Vice President SIAM & Managing Director, Ashok Leyland, Rajiv Bajaj, Managing Director, Bajaj Auto, Nigel Harris, President, Ford India, Jagdeep Singh Rangar, Managing Director, Stork Rubber Product,s and Philipp Radtke, Director, McKinsey & Company, Munich took the pedestal to discuss potential global opportunities.
Nitin Gadkari said Indian Auto Component makers are crucial to the nation building mechanism. The new Government is committed to to ensure the most feasible policy environment to doubleexports of for global markets. Anant Geete said ACMA leads to bring together Indian Component Makers and make the most of global opportunities.
Piyush Goyal feels it’s time Indians can keep their head high and take pride in their offerings for overseas. Auto Component sector has potential to work through challenges and establish a stronger name globally. He encourages the components industry to bee aggressive and reaching out to global markets and be competitive through high quality products.
Harish Lakshman says the auto industry is important to the Indian manufacturing sector. As India develops as a global manufacturing hub, export potential in the domestic auto industry grows, making it an ideal time to invest in technology, innovation, training and resources.
Mr Ramesh Suri offers encouragement saying ACMA will engage with the government at all possible levels to create an enabling policy environment to fuel auto component segment growth. ACMA members need to gear up and explore growth opportunities.
Sumit Mazumdar spoke about current industry optimism after been challenged by slowdown in demand and flagging sales these past two years.
Vikram Kirloskar views ACMA and SIAM as important stakeholders for the Indian automobile industry, and is committed to jointly tap opportunities for industry members in domestic and international markets.
The joint ACMA-McKinsey study suggests that globalisation in the auto-suppliers industry is progressive, and likely to increase. Macro-trends that drive growth are OEMs going global with suppliers following them, maturing of low-cost countries (LCC) as export hubs, platform consolidation and a shift towards large global suppliers, increasing aspiration of emerging market suppliers to reach new markets, and technologies and market diversification for margin resiliency.
Indian suppliers are well positioned to benefit from global trends and improve international presence in the next few years. On the basis of market comparisons, supplier and OEM surveys, Indian suppliers can nurture a three-pronged 2020 aspiration. Increase exports from current $10 bn to $35-40 bn, increase revenues from overseas assets from $ 6 bn to $ 20-22 bn, and increase count of Indian suppliers in global top 100 by 2020 from the current 5 by 2020.
Challenges faced by the automotive industry in India can be overturned when market players go back to revisiting strategies, reorient organisations, streamline processes and gear up and deal with obstacles. This helps component manufacturers to emerge stronger and be globally competitive.