The automobile component industry and SIAM are working together to localize various products used in vehicles to reduce their price. ACMA President Deepak Jain gave this information on Thursday.
Speaking at the inaugural session of ACMA Automechanika, a two-day industry event, he said the initiative would also help the industry reduce imports of sub-standard components. Jain said, "The Association of Automotive Component Manufacturers (ACMA) and the Society of Indian Automobile Manufacturers (SIAM) are working together to increase deep localization in the auto component sector, which will enhance our price competitiveness in the global market."
He said that this will not only help us to increase exports but will also help in curbing the import of smooth and sub-standard components which are fully imported due to better prices. Jain said that the recently announced PLI scheme aims to increase the export competitiveness of the industry by encouraging the industry.
"A large outlay of Rs 57,000 crore has been made for the entire automotive industry. All these measures are well-developed for the export of auto parts, including aftermarket," he said. Jain said that the aftermarket segment was perhaps the most vibrant and fastest-growing segment in the auto component industry.
He said that in 2019-20, it stood at the US $ 9.8 billion, with a compound annual growth rate (CAGR) of 12 percent, while the auto component industry had a total turnover of US $ 50 billion with a CAGR of 8 billion.
"It is interesting to note that last year, which was probably the most challenging year for us due to the outbreak of the epidemic, across all segments of the industry, it is the original equipment manufacturers (OEMs), or exports or supplies," said Jain. Imports were badly affected, but remained strong even after that, reflecting the unwavering spirit of the aftermarket.
"More than 70 manufacturers and suppliers are showcasing their latest auto components and accessories at ACMA Automechanika. ACMA has partnered with Messe Frankfurt for a two-day virtual fair this year. Jain said," Our collaboration with Messk Frankfurt The partnership provides our members with the opportunity to not only participate in this show but also to participate in other emerging Automotive shows that are also held in developed markets and grow their export business. "