Localisation is the key to a resilient Indian automotive industry

Localisation is the key to a resilient Indian automotive industry

23.02.2021: Gearing up for the new edition of the trade fair in New Delhi, organisers of ACMA Automechanika – Messe Frankfurt India and The Automotive Component Manufacturers Association (ACMA) share their insights on the need for deep localisation of auto component

Gearing up for the new edition of the trade fair in New Delhi, organisers of ACMA Automechanika – Messe Frankfurt India and The Automotive Component Manufacturers Association (ACMA) share their insights on the need for deep localisation of auto component manufacturing and the role of the recently announced union budget in promoting this objective.



The approach of automotive industry in 2020 was largely subdued as the issuance of trade restrictions brought a drastic slowdown in key sectors. Amid the doldrums of the pandemic, harnessing a digital business model and focus on financial health greatly enabled automobile companies to continually persevere and push forward.



Despite endless hurdles faced last year, some green shoots appeared toward the second quarter as demands briefly resurfaced during festive seasons. Domestic retail vehicle sales across categories grew for the first time since the onset of the pandemic, as a double-digit growth was achieved in the sale of passenger vehicles (PV) and two-wheelers, posing to be a good omen for the New Year.



While industry experts continue to be cautiously optimistic, recent projections from Indian Independent and Professional Investment Information and Credit Rating Agency (ICRA) show that the domestic auto component industry's revenue may grow by 16-18 per cent in the subsequent financial year.



There have also been speculations that demands may revert to the 2019 levels, in case auto sales and production retain normalcy this year. With potential development of the COVID vaccine, in consort with a rising preference towards personal mobility, consumer sentiment may too tip in favour of the industry.



Commenting on the industry and its leading exhibition in the automotive aftermarket, Mr Raj Manek, Executive Director & Board Member, Messe Frankfurt Asia Holdings Ltd., shares
: “It is very vital to provide a push to local manufacturers to bolster the domestic supply chain and strengthen the automotive industry from its very core.”



With world’s leading electric car company setting up its base in India, it will be just a matter of time before the first fleet of electric cars arrive in India. “Thus, a more resolute approach towards e-mobility by OEMs will largely benefit in the long term.”, adds Manek.



As one of the leading automotive exhibitions of India, ACMA Automechanika (Slated to be held from 22 – 25 April 2021 at Pragati Maidan, New Delhi) has been the ultimate “pit-stop” to discover new technologies and engage with leading automotive aftermarket service providers and components manufacturers from the industry.



“Going forward, the focus of our automotive trade fairs will not just be aimed at creating a safe and healthy atmosphere for channel players to promote their businesses, but also enabling them to develop collectively as one integrated industry.”, concludes Mr Manek.



Mr Vinnie Mehta, Director General – Automotive Component Manufacturers Association (ACMA) also shares his views on the upcoming edition of ACMA Automechanika,
“The excitement is mounting as the biennial ACMA Automechanika New Delhi, the flagship Aftermarket Expo, draws closer.



To be organised jointly by ACMA and Messe Frankfurt, the event is being held at an opportune time as the automotive market gains momentum post the pandemic hiatus. The expo, probably, the first of its kind in the 'real world' since the lockdown, will be a ‘HYBRID’ one. Bridging the best of a physical and online exhibition, the one-stop sourcing platform will provide a preview of the latest aftermarket innovations and a sneak-peek into shapes of things to come.”



“With the automotive industry expected to recover fast and grow in double digits in most segments, the expo will be a booster shot to bring the industry back on track. It will also help consolidate India’s position as a major manufacturing hub for automotive components.



Apart from a strong presence of domestic and international aftermarket product exhibitors, the popular business event will not only attract the domestic buyers but also the international OEMs and aftermarket distributors.” Mr Mehta elaborates.



The recently announced ‘Budget 2021’ puts a crucial focus on road building, voluntary scrappage policy, R&D and PLI among others, auguring well for the automotive sector.



Boons of Union Budget 2021-22 for local auto component manufacturers



The emphasis on “Atmanirbharta”, accompanied by an increase in custom duty on certain auto components will encourage local manufacturers to produce components within India. With an investment of INR 1.97 Trillion towards the production linked incentive scheme (PLI), the government will provide a strong impetus to localised manufacturing over next the 5 years, and the doubled budget outlay for the MSME segment will deliver stronger support to the auto component segment which is primarily dominated by MSMEs.



The ‘voluntary scrapping policy’ announced by the government to boost the production of energy-efficient vehicles in India will not only lead to a reduction in vehicular pollution, but also generate new demands for the commercial and passenger vehicle segment, thus creating opportunities for OEMs and tyre manufacturers.



With the auto industry on the path of recovery, government’s goal of achieving ‘Atmanirbharta’ will certainly be a vision to look up to, as deep localization would not only make the automotive industry globally competitive, but also more resilient in face of any future crisis.




Royston D’Souza- photos Messe Frankfurt



Permanent-URL: http://www.automobilsport.com/localisation-key-indian-automotive-industry-new-delhi-acma---219579.html

23.02.2021 / MaP

More News

Lamborghini Miura SV and Countach LP 400 “Periscopio” fetch record prices at the RM Sotheby’s Paris sale
22.02.2021
At RM-Sotheby's Paris auction on 13 February 2021, two of Automobili Lamborghini's most iconic historic cars were auctioned at record prices. The models sold by the famous auction house were a 1971 Miura SV chassis number #4840 and a 1977 Countach LP 400 chassis #1120262. more >>
Kia showcases new defense vehicle technologies at IDEX 2021
22.02.2021
    Kia displays Light Tactical Cargo Truck and Bare Chassis concepts at the IDEX defense exhibition in the UAE    Unique design optimized for military use offering superior mobility, durability and functionality    Modular platform can underpin mobile workshops, communication hubs and troop and cargo carrying ca more >>
60 years of the world’s most beautiful car celebrated at E-Type UK
19.02.2021
    2021 marks 60 years since Jaguar launched the E-type; the team at E-Type UK are responsible for keeping many of these iconic cars in perfect order    Showroom highlights include two immaculate Series 1 4.2 RHD FHC and a 1961 Flat Floor Series 1 3.8 with many early desirable features    Expertly re more >>
Autocar kicks off its Great Women: Rising Stars 2021 initiative
15.02.2021
    The virtual event, which takes place on 15 June, recognises the top female rising stars in the UK’s automotive industry    Individuals can nominate themselves or be nominated by a friend, colleague or employer, to be considered by a panel of industry experts    Nominations close at 11.59pm o more >>
‘Rocketman’s’ Maserati goes under the hammer
12.02.2021
    2005 Maserati Quattroporte for auction with The Market    Ordered new by Sir Elton John with a whole host of extras    Incredibly low mileage and in excellent condition    Online auction to start on Thursday 18th February and close on Thursday 25th February more >>
Interview with BILSTER BERG Managing Director and Project Developer Hans-Jürgen von Glasenapp
09.02.2021
"In this crisis, we all stand together!"  Mr von Glasenapp, Covid-19 dominated our lives in 2020. How has the pandemic affected the activities at BILSTER BERG? We were able to adapt very quickly more >>
BMW Group Plant Hams Hall: Twenty years
08.02.2021
Twelve milestone products - One UK manufacturing successAs BMW Group Plant Hams Hall celebrates 20 years of production in the Midlands, we explore twelve pivotal moments and the products that put this North Warwickshire plant on the map as a centre of engine manufactur more >>
London Concours 2021 celebrates the great Italian Berlinettas
07.02.2021
    The London Concours has announced the first of its 2021 classes: a celebration of the great ‘Italian Berlinettas’    Focusing on the golden era of the ‘60s, design icons like the Ferrari 25 more >>
Select Electric Motor Show brings future tech into focus at British Motor Show in 2021
07.02.2021
    The Select Electric Motor Show becomes part of the 2021 British Motor Show    Backed by Select Car Leasing, the UK’s leading car leasing company, Hall 5 will focus on EVs and future tech, from the latest models to converted classics    Rescheduled show to deliver even more content in 2021&nb more >>
Carroll Shelby and Ford Motor Company celebrate Valentine’s Month
05.02.2021
•    Carroll Shelby’s AC Cobra with Ford V8 power helped define the muscle car segment•    The Shelby GT350 and GT500 established the Mustang as a performance sportscar•    Carroll Sh more >>
Renault celebrates the 60th anniversary of an icon: the 4L
04.02.2021
    A mythical car, sold in more than 8 million units.    A true icon of Pop Culture.    2021, a year full of celebrations.2021 marks the 60th anniver more >>
CAPAS 2021 debuts the Chengdu-Chongqing Dual-city Economic Rim zone for sustainable automotive growth
04.02.2021
The Chengdu International Trade Fair for Automotive Parts and Aftermarket Services (CAPAS) returns from 20 to 22 May 2021. The show will debut the Chengdu-Chongqing Dual-city Economic Rim zone to highlight the latest regional development strategy for the automotive value chain. more >>
AMR returns in April to spotlight the opportunities of China’s Inner Circulation
02.02.2021
The 2021 edition of the Auto Maintenance and Repair Expo (AMR) is returning to Beijing from 24 to 27 April. During the four-day show, over 8,000 brands from more than 1,000 local and overseas exhibitors, will be on display across 100,000 sqm of exhibition space at the New China International Exhibition Center (NCIEC).  more >>
Goodwood’s Motorsport Event Tickets Go on Sale to Public
02.02.2021
    Tickets for Goodwood’s three headline motorsport events go on sale to the general public today.     Limited tickets are available due to 2020 roll-overs and adjusted capacities. more >>
Walk of Oman Expedition Welcomes New Team Member- Ben Gallagher -with video
29.01.2021
Grenadier Walk of Oman Expedition Welcomes New Team Member- Ben GallagherWith just over 2 months to go until the Grenadier Walk of Oman gets underway, the team have welcomed a new member to the Expedition- Ben Gallagher.Having served more >>
Walking With The Wounded CEO and Co-founder Ed Parker to step down after a decade supporting those who served
29.01.2021
Ed Parker, Chief Executive and Co-founder of military charity Walking With The Wounded (‘WWTW’), has announced he will step down after 10 years in the role. He will be succeeded by Fergus Williams, the current Director of Operations, who has pioneered WWTW’s programmes with the NHS. more >>
A calendar dedicated to Alfa Romeo’s history
29.01.2021
•    Museo Alfa Romeo is back on track – virtually, for now – with a special series of Backstage conferences.•    Twelve conferences to explore just as many milestones in the brand’s history, a history which has many special anniversaries to celebrate this year.•    The firs more >>
Jeep® celebrates 80 years of history and innovation
29.01.2021
    Jeep® celebrates 80th birthday in 2021    New Jeep Wave loyalty program, providing customers with exclusive services and special benefits    Milestone to be marked with introduction of new 80th Anniversary special-edition Renegade and Wrangler models, arriving in UK showrooms this spring more >>
Live Company Group and Messe Frankfurt South Africa partner for launch of the eMobility Festival in Cape Town
17.01.2021
Live Company Group Plc is pleased to announce that it has, via E-Movement Holdings Limited a 100% subsidiary of Live Company Group, partnered with Messe Frankfurt South Africa for the launch of the eMobility Festival 2021.The eMobility Festival will focus on Elec more >>
Mercedes Benz F 100 in 1991 - A powerful glance into the future of the car
12.01.2021
    Research vehicle with numerous pioneering systems       From distance control to xenon headlights    Already a pioneer more >>
CASA SEAT will explore the goals for 2021 in January across a range of disciplines
12.01.2021
    On 28 January, economist Thierry Malleret will present the keys to the book COVID-19: The Great Reset, written with Klaus Schwab, founder of the World Economic Forum    Santa Salut and Ganges will open the Barcelona Z Sessions on 23 more >>
Las Vegas Supports CES with Marquee Takeover
12.01.2021
    Marquees along the Las Vegas Strip light up in support of CESLas Vegas resorts and attractions joined together to show support of the Consumer Electronics Show (CES) with an orchestrated marquee display hours before the start of the ann more >>
BMW announces the future of the display and operating system BMW iDrive at the CES 2021
11.01.2021
The BMW iDrive celebrates 20 years at the all-digital CES2021. A paradigm shift in the interaction between driver and vehicle became an industry standard and laid the foundations for today’s multifunctional, online-based user experience.20 years ha more >>
ACMA & Messe Frankfurt India announce first hybrid edition of ACMA Automechanika New Delhi in 2021
05.01.2021
A significant business event in the international automotive industry trade calendar, ACMA Automechanika New Delhi is all set to go hybrid from 2021. Messe Frankfurt India together with Auto Component Manufacturers of India (ACMA) have announced that the 5th edition throug more >>
Participants’ feedback on Automechanika Shanghai 2020
21.12.2020
Onsite buyer:Mr XiaoBin Li, General Manager, Qingdao Julun Tire Co Ltd“Compared with the other exhibitions I have visited, Automechanika Shanghai continues to out-perform in terms of its scale, comprehensive coverage of the supply chain and reach in the international market. In addition to exploring the exhibitors in REIFEN (Tyres & Wheel more >>
Automechanika Shanghai 2020 demonstrates the workings of a hybrid event to unlock global automotive development
21.12.2020
A few weeks on from wrapping up the 16th edition of Automechanika Shanghai 2020, which took place from 2 to 5 December, organisers, exhibitors and visitors reflect upon the show’s efforts to reconnect the automotive ecosystem. Numerous parties across the global supply chain complimented its innovative hybrid format, which virtually transported play more >>
Automechanika Kuala Lumpur defers to 2022
11.12.2020
With COVID-19 cases still being recorded in Malaysia[1], the organisers of Automechanika Kuala Lumpur defer the upcoming edition of the show initially planned for March 2021. The move to reschedule the fair to 15 – 17 March 2022 comes as a result more >>
The 16th edition of Automechanika Shanghai 2020 closes, brokering new automotive trade fair experiences
08.12.2020
Rounding up a unique year, Automechanika Shanghai’s physical fair closes its doors after successfully engaging with players worldwide through its hybrid platform, AMS Live. These onsite-to-online activities presented dynamic opportunities to reconnect the automotive ecosystem and further stimulate industry recovery.  Preliminary participation more >>
Lamborghini celebrates the 30th Anniversary of the Diablo
03.12.2020
Automobili Lamborghini celebrates the 30th Anniversary of the Diablo this year, one of the most iconic models in the history of super sports cars, and originally on the market from January 1990.The Diablo story began in 1985. It was codenamed Project 132, with t more >>
Automechanika Shanghai 2020 opens tomorrow
01.12.2020
... jump starting the resumption of trade fairs for the automotive industry   Ms Fiona Chiew, Deputy General Manager of Messe Frankfurt (HK) Ltd, said: “The team has worked diligently to ensure Automechanika Shangha more >>
Automechanika Shanghai kicks off with German companies on board
30.11.2020
Automechanika Shanghai is taking place as scheduled from 2 to 5 December – and German companies are part of the action. A total of 16 German companies are presenting their products and services at the event, with most participating in a German Pavilion. more >>
Window into the future: Audi is the headline partner of Design Shanghai
26.11.2020
     Walk-through landmark installation at the entrance to the fair        Audi Q4 e-tron concept at the center of an LED show        Head designer Marc Lic more >>
Goodyear, US Marine Corps reserve to host 10 Annual Toys for Tots Events
24.11.2020
Toy drive supported by events in both Ohio and FloridaGoodyear and the U.S. Marine Corps Reserve are partnering for the tenth consecutive year in support of the Marine Toys for Tot more >>
New Mercedes Maybach S-Class world premiere at the Auto Guangzhou, China
21.11.2020
The new Mercedes-Maybach S-Class celebrated its world premiere not on one, but on two stages yesterday: on the international digital platform Mercedes me media and in front of a live audience in its largest market in China. On the eve of the Auto more >>
Hypermotion – the highlights and the numbers
18.11.2020
Hypermotion 2020, which had to be held entirely digitally due to official requirements, attracted a great deal of interest in the community. The multimodal innovation platform featured numerous live streams and interactive modules on both days of the event, and this content will continue to be available online at messefrankfurt.digital/hypermotion until 10 December 2020. more >>
Automechanika Shanghai 2020 unites international and domestic markets
13.11.2020
As the automotive industry transitions alongside the backdrop of COVID-19, Automechanika Shanghai navigates these new roads through its innovative hybrid event.   The show commences from 2 to 5 December at the National Exhibition and Convention more >>
Three seater F.1 car and Squadra Corse Angelo Caffi at Minardi Day 2021
12.11.2020
Top emotions at Imola with Alex Caffi and Nicola Larini on the Jordan Judd V10 only for 70 exclusive guests in the event that celebrates the great Italian brand of motorsport.At Minardi Day scheduled on April 10th and 11th 20 more >>
Lamborghini celebrates the 50th Anniversary of the Jarama GT
12.11.2020
This year marks the 50th Anniversary of the Lamborghini Jarama GT, presented for the first time at the Geneva Motor Show in March 1970.The Jarama, whose name derives from an area north of Madrid famous for breeding fighting bulls, was the latest evol more >>
Shanghai hosts third Porsche Sports Cup alongside Porsche Sportscar Together Day
06.11.2020
Alongside the Porsche Sportscar Together Day, the third edition of the Porsche Sports Cup in China welcomed 490 participants in various road and race car events at the Shanghai International Circuit.   Once again, the Porsche Sportscar Tog more >>
2001-2021 copyright automobilsport.com