Invested In Technology

The auto components industry wants to stay ahead of the curve. Building on the momentum from the last fiscal, the component manufacturers with their tier suppliers want to be ready for the next wave of opportunity. With no clear roadmap on the single dominant technology of the future, it is clear that a one fit for all approach won’t work. Instead of succumbing to disruptions all around with the non-traditional automotive companies forcing a change in approach, the well-established players have taken up the challenge as a gateway to new opportunities. The conditional support from the government to manufacturers invested in Advanced Automotive Technology (AAT) has also made a case for this transition. Component manufacturers are looking to strike the right balance between staying true to their DNA for profitability and investing in the sunrise sectors for future growth. Both are driven by advancements in technology and require the industry to significantly scale up its R&D budgets. The success or failure though will eventually be dictated by the pursuit of the lowest total cost of ownership. With 30 per cent of the components in a vehicle under direct threat of extinction, the focus will continue to be on leveraging parts localisation, commonality, modularity and scalability including on the smallest components. Watch out for the detailed coverage of the 62nd ACMA Annual Session 2022 in our upcoming issue where the stakeholders of the industry, spoke upfront.

With 30 per cent of the components in a vehicle under direct threat of extinction, the focus will continue to be on leveraging parts localisation, commonality, modularity and scalability.