The growing Indian automobile market drew lot of attention from global auto components manufacturers who are waiting to invest in the country.
At the just concluded Auto Expo-Component Show in the capital several global companies were exploring opportunities to invest in India. At least 600 international component firms had displayed a range of automobile components and solutions with a view to tap into the rising domestic market.
In the last edition of the Component Show in 2014, 450 foreign exhibitors had participated. The total number of exhibitors, including domestic ones, has grown to 1,500 now against 1,200 in the previous edition.
Automotive Component Manufacturers Association (ACMA) Director-General Vinnie Mehta said there was rising interest in international manufacturers to understand trends in India.
The Auto Components Expo at PragatiMaidan has eight dedicated international pavilions — China, Japan, Taiwan, South Korea, Canada, the UK, France and Germany. The French and South Korean pavilions are an addition over the last Expo.
South Korean delegation said there was keenness among industry players to work with the Indian automobile industry. Eleven South Korean companies had displayed components, especially electronic auto components, where the dependence on imports is significantly high.
Manufacturers from the UK too participated under the aegis of SMMF, the British counterpart of ACMA, to explore opportunities in Indian automotive manufacturing. British companies want to invest in India, put up manufacturing facilities for electric cars and also collaborate in R&D for efficient fuel solutions.
Arvind Balaji, ACMA President and joint managing director of component maker Lucas-TVS, said, “This is the second year when the Component Show is being organised separately from the Motor Show. It has given us more space and attracts focused visitors. We have had a record 1,500 participations this time. This shows that India is a market of the future. Everybody wants to establish a position in the country.”
The rising focus of international players means greater competition for quality and market share for the domestic players, many of which have a tie up with foreign companies, he said.
Another highlight of the show is the Innovation Pavilion, spread over 100 square metres, and created to draw attention to the latest innovations which auto component companies have indigenously designed, developed, tested and validated in India. Companies such as Sona Koyo, Lucas-TVS and Brakes India showcased their innovations.
ACMA has chosen ‘Make Quality & Technology in India’ as its theme this year. The component industry also made efforts to raise awareness about counterfeit products being sold in the replacement market through its ‘Asli-Naqli’ pavilion.
The $38.5-billion component industry gets almost 30 per cent of its revenue from exports. The Automotive Mission Plan (AMP 2026), unveiled by the government last year, has set a target of a turnover of $223 billion by 2026 for the auto components sector, backed by strong exports ranging between $80-100 billion, from the current $11.2 billion.
Source: Business Standard
