Deepak Jain, President, ACMA and Chairman and Managing Director at Lumax Industries Ltd.
Q. How do you see the auto components industry staging a turnaround from the current slowdown in growth?
A. A lot has been talked about the ongoing slowdown. The auto industry is cyclical in nature. This is not the first slowdown we are witnessing and neither is it the last one that the industry will see. The industry has recently seen a lot of structural changes take place rapidly, both to the economy and the auto industry at a very rapid pace. It has prolonged the downturn. Factors like the implementation of GST, demonetisation and NBS liquidity, are a few of the measures which we have a lot of hope from. In terms of the total cost of ownership to the run-up towards BSVI emission norms, it has risen manifold. The compliance to the upcoming BSVI norms from April 2020 is a critical milestone for the industry and we know that there could be a disruption or a further slowdown due to this policy change as well. Hence, I would say we are aligned with our OEM partners in tackling and addressing this prolonged slowdown.
Q. With the advent of BSVI next year and EVs being touted as the next big thing, how is the components industry ensuring a seamless transition?
A. Firstly, let me be clear that future mobility will not be only electric. The government, and our Prime Minister have clarified that the old technologies can co-exist. Our Finance Minister has also clarified that BSIV and BSVI engines, along with existing fuel options of petrol and diesel will coexist. Hence, the beauty of the Indian auto industry is this diversity and the potential that arises due to this co-existence of technologies. Talking purely about EVs, we are perfectly aligned with the government’s agenda of getting cleaner and safer vehicles on our roads. This is expected to go a long way in reducing our fossil fuel requirements and lowering our carbon footprint. EVs will surely come in the future, but currently, it is our responsibility to educate the end consumer that if she/he has the need to buy a vehicle, they must not postpone their purchase. It is the auto industry’s collective responsibility to ensure that amongst all the clutter and deliberations happening, the end consumer is not confused prior to making a buying decision. If we are successful in doing that, we might be able to mitigate the effects of low buying sentiments by coming together with the OEMs to a large extent.