India’s automotive component industry charms global market
dubai — Known as India’s ‘Sunrise sector’, the automotive industry had an impactful presence in Dubai at the recently concluded Automechanika 2018.
The Middle East has a number of vehicles running in the region resulting in constant wear and tear, and according to Vinnie Mehta, director-general, Automotive Component Manufacturers Association of India (ACMA) this offers a unique opportunity for Indian automotive component companies to tap into the market.
Mehta told Khaleej Times: “We were delighted to have over 100 companies participate at the India pavilion, which is the joint effort between ACMA and Engineering Export Promotion Council of India (EEPC). It was last year that we started presenting a ‘one India entity’, and I think it has done very well for us as an industry.”
He highlighted that the GCC is an important market for India’s automotive industry, as it allows access to a whole host of countries right from the Middle East, Pakistan, and Iran to Iraq, as well as the African countries.
“India is world number one in tractor manufacturing, world number one in two-wheel manufacturing and world number four in car manufacturing, making it a global industry. India’s automotive industry recently became the world number four. Our vision is to be among the top three globally in the next 10 years. Since the industry has consistently been contributing with a significant multiplier effect to the entire economy, it is rightly referred to as the ‘Sunrise sector’ and I hope it continues to be sunny!” he shared.
In terms of supporting the economy, the auto component industry contributes more than two per cent to India’s GDP, Mehta emphasised. “We contribute 4 per cent to the overall exports, employ around three million people and our turnover is more than $43 billion. Also, the industry is keeping pace with rapid developments and is building its technological competence,” Mehta said.
Most of the Indian auto component companies have a strong focus on quality and have an ISO9000 and ISO/TS 16949 certification. A number of these are also proud recipients of the Deming award, which is the world’s topmost quality award. The industry also follows the United Nations Economic Commission for Europe (UNECE) for emissions, environment or safety.
Looking ahead, Mehta commented on the Automotive Mission Plan that is looking to make the automotive component industry a $200 billion business by 2026. He concluded: “Our bedrock is QCD – Quality, Cost and Delivery. In the future, we need to focus more on innovation, position ourselves smartly, and the world market is ours to capture.”
—deepa@khaleejtimes.com