‘The Transition’ of Auto Component Industry in India

Posted on September 5, 2012 by sagarmedia

ACMA’s 52nd Annual Session focuses on ‘The Transition’ of Auto Component Industry in India to the Next Level.

Joint ACMA-McKinsey study on ‘Leveraging superior growth to strengthen the country’s competiveness’ and Joint ACMA-Ernst & Young study on ‘India as an emerging auto product development hub’ unveiled

ACMA Supplier Portal for Tier-2s/ Tier-3s and Website of ACMA Centre for Technology (ACT) launched

New Delhi: 05 September, 2012: ACMA, the apex body of the Auto Component Industry in India today hosted its 52nd Annual Session & National Conference on the theme ‘Auto Component Industry – Ready for The Transition’. The Annual Session was inaugurated by Praful Patel, Union Minister of Heavy Industries & Public Enterprises, Government of India. The Annual Session was also graced by of distinguished guests including Pawan Munjal, MD & CEO, Hero MotoCorp; Adi Godrej, President CII & Chairman, Godrej Group and S Sundareshan, Secretary, Ministry of Heavy Industries & Public Enterprises, Government of India.



The Conference focused on the need for looking beyond conventional manufacturing. It centred attention on diversifying into adjacent industries as well as on innovation and R&D to jettison forward and emerge as one of the leading automotive manufacturing and product development hubss of the world.



The auto component industry in India has witnessed robust growth over the last 5 years at 15% CAGR; it is at the point of inflection and must scale-up to get into the next orbit of growth and relevance.



Speaking at the inaugural session Praful Patel, Union Minister of Heavy Industries & Public Enterprises, Government of India said, “As per the 12th Five Year Plan, the ministry is reviewing targets set up under the Automotive Mission Plan 2006-16. The extrapolations that have been drawn clearly indicate that the output of the automobile & auto component industry would reach USD 145 billion by 2016, accounting for more than 10% of the country’s GDP and in turn generate employment for more than a million people”. He further suggested that to be globally competitive it is essential for the Indian auto component industry to move up the value chain and to innovate and invest in product and process improvement through meaningful R&D. Mr. Praful Patel, enumerated the following imperatives:



Industry to work towards creating capacity ahead of demand – in turn decreasing the cost of imports



Industry to focus on increasing export prospects through bilateral routes and regional FTAs



Focus on adequate talent creation, retention and skilling



The ACMA Annual Session witnessed launch of two studies by Mr Patel. The joint ACMA-McKinsey study on ‘Leveraging Superior Growth Foresight to Strengthen Company Competitiveness’ reveals that while the Indian auto components growth story is going to stay intact in the near future, the industry cannot afford to rest on its laurels. It elucidates essentials on where the growth and value creation are likely to migrate and how Indian component industry can build a global footprint & assimilate capabilities through targeted acquisitions. It also elaborates on the need and the path to be taken by the auto component industry to grow into adjacent markets such as defence offsets, railways, etc. by leveraging their core competency.



To support India’s emergence as a global product development hub, it is essential that Indian component manufacturers build progressive R&D capabilities and that a supportive ecosystem for capacity and capability development be created, highlights the joint ACMA-Ernst & Young study on ‘Growing beyond Manufacturing: India as an Emerging Auto Product Development Hub’. The study illustrates the trends in product development and the way forward for the automotive component manufacturers in India to move up the value chain through collaborative R&D.



Speaking at the inauguration of the ACMA Annual session Arvind Kapur, President ACMA & Managing Director, Rico Auto Industries Ltd said, “There is a symbiotic connect between the growth of automobile & auto component industry and the economy. The Indian economy is experiencing not just an ordinary slowdown but a sharp downturn in investment cycle, domestic policy paralysis and uncertain trade environment. However, one must not forget that underpenetrated markets and the unfulfilled mobility aspiration of the people of India, are the sliver lining that gives us the confidence of a steady growth trajectory.”



“To be truly globally competitive, our relationship with our customers must transcend from being transactional to a mutually beneficial one. Neither build-to-print nor operational excellence is enough to be globally competitive. We have to partner with the OEMs in Design, Development and Testing and build affordable, innovative solutions”, added Kapur.



ACMA’s Suppliers Portal, a joint initiative of ACMA and the OEMs was also formally launched at the Annual Session. The portal showcases details of various tier 2 & tier 3 auto component suppliers thus providing them with the opportunity to connect better with the OEMs’ & tier I players. ACMA non-members companies can also post their details on the portal free of charge.



The ACT Website inaugurated during the Annual Session is a repository of various cluster programs, training programs on Lean, Six Sigma and Production Management. A company can assess it production capabilities by running a simple diagnostic test on the website. The ACT portal also showcases case studies of companies that can be referred by member companies for benchmarking innovative manufacturing practices.



Both the above portals can be accessed from the ACMA website www.acma.in.



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About ACMA: The Automotive Component Manufacturers Association of India (ACMA) is the apex body representing the interest of the Indian Auto Component Industry. Its active involvement in trade promotion, technology up-gradation, quality enhancement and collection & dissemination of information has made it a vital catalyst for this industry’s development. ACMA’s charter is to develop a globally competitive Indian Auto Component Industry and strengthen its role in national economic development as also promote business through international alliances. ACMA is an ISO 9001:2008 certified Association.