TAN­GI­BLE PROGRESS

Auto components India - - EDITORIAL - Bhar­gav TS Ex­ec­u­tive Ed­i­tor s.bhar­gav@nextgen­pub­lish­ing.net

In­dian com­po­nent in­dus­try, which has recorded 18% YoY growth in FY2018 and sur­passed $50 bil­lion turnover for the first time, is bullish about sus­tain­ing the growth trend. The in­dus­try is also aware of the near-term chal­lenges. In­dian au­to­mo­tive in­dus­try has sig­nif­i­cant head­room for growth and a huge op­por­tu­nity awaits the com­po­nent in­dus­try. Though in­dus­try is happy with the sup­port like the ra­tio­nal­i­sa­tion of GST rates, it is ask­ing the govern­ment for a re­search and de­vel­op­ment and tech­nol­ogy ac­qui­si­tion fund.

The au­to­mo­tive in­dus­try is the prime con­trib­u­tor to ‘Make in In­dia’. De­spite the global head­winds, the high­est ex­ports recorded in 6 years were in FY2018. It is a ca­chet for the auto com­po­nents in­dus­try, but the ques­tion is: what is next? To grow fur­ther the in­dus­try has to rein­vent and think global. In the re­cently-com­pleted 58th an­nual con­ven­tion of the Au­to­mo­tive Com­po­nent Man­u­fac­tur­ers As­so­ci­a­tion of In­dia (ACMA) in New Delhi, all the in­dus­try cap­tains were lauded for in­vest­ing in R&D and fac­ing chal­lenges by trans­lat­ing them to op­por­tu­ni­ties. A lot of em­pha­sis was given to be tech­nol­ogy-ready in terms of in­vest­ment in new, cut­ting-edge tech­nolo­gies, de­vel­op­ing best-in-class ca­pa­bil­ity and ca­pac­ity, while also be­ing geared up with an ag­gres­sive xEV and BSVI-com­pli­ant port­fo­lio.

In the en­tire event, op­ti­mism pre­vails in the au­to­mo­tive in­dus­try, es­pe­cially among the com­po­nent mak­ers in spite of nu­mer­ous chal­lenges ahead. To face the up­com­ing chal­lenges, the com­pa­nies have to in­vest in new tech­nolo­gies and ca­pac­ity. The im­me­di­ate need is to in­crease road safety, re­duce pol­lu­tion and ab­sorb the fuel costs. It is nec­es­sary for the in­dus­try to en­hance safety of the ve­hi­cle but at the same time driv­ing skill de­vel­op­ment needs to be ad­dressed and the govern­ment has to take re­quired steps to pro­vide proper in­fra­struc­ture.

Re­cent stud­ies re­veal that 30% of the Mum­bai-Delhi stretch and 50% of the Mum­bai-Chennai stretch of the Golden Quadri­lat­eral are un­safe for ve­hi­cles, worse for two-wheel­ers and pedes­tri­ans, as there are hardly any fa­cil­i­ties avail­able. In­dia’s road safety de­sign in­evitably needs to be tai­lored to lo­cal con­di­tions and us­age pat­terns. The govern­ment has em­barked on a mas­sive road build­ing pro­gramme un­der the `Bharat­mala’ project. This pro­vides an open­ing to re­think about the tra­di­tional ap­proach and find ways to im­prove road safety. There­fore, a 360 de­gree ap­proach is re­quired and let us shed more light on the im­por­tance of road safety.

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