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Informist, Monday, Sep 9, 2024

 

--Maruti Suzuki India MD: India emerging as global hub for auto parts 

--Maruti Suzuki India MD: Need to support local semiconductor mfg 

--Maruti Suzuki India MD: Cannot depend on imports as chip usage rises 

--IN-SPACe Goenka: Must transition to e-vehicles quickly 

--IN-SPACe Goenka: Need electric vehicles more than US, EU 

--CONTEXT: IN-SPACe Chairman Pawan Goenka speaking at ACMA event 

--IN-SPACe Goenka: E-vehicles only way to reach net-zero emission aim 

--IN-SPACe Goenka: Believe future of trucking is in green hydrogen 

--IN-SPACe Goenka: Auto sector can potentially grow to $1.6 trln by 2047 

--IN-SPACe Goenka: Auto part exports can potenially hit $500 bln by 2047 

--Kumaraswamy: Auto industry must keep reducing dependency on imports 

--CONTEXT: Heavy Industries Minister Kumaraswamy at ACMA annual event 

--SIAM head Aggarwal: Achieved 2% reduction in import of components 

--SIAM head: Auto industry identified 50 key components for mfg locally 

 

By Darshan Nakhwa and Pallavi Singhal

 

NEW DELHI – Maruti Suzuki India Ltd Managing Director and Chief Executive Officer Hisashi Takeuchi today said that India must position itself as a hub for high-quality, affordable mobility components. The goal, he said, should be to not only meet, but exceed global standards. 

 

Indian suppliers have acquired in-depth knowledge of conventional manufacturing processes. Now, the industry must extend this expertise to new technologies, offering not only cost-effective solutions but also meet the highest quality standards, Takeuchi said at the annual session of the Automotive Component Manufacturers Association of India'. 

 

"India is emerging as a global hub for auto component sourcing, and the industry exports over 25% of its production annually. However, this is less than 2% of global auto industry trade, giving us a huge opportunity to increase exports further. The world is watching, and the steps we take today will shape the future of our industry for decades to come," Takeuchi said. 

 

Takeuchi emphasised the steps that India needs to take to become self-reliant in the auto components space – offer technologically advanced features at affordable prices, support local semiconductor manufacturing, adopt digitalisation and automation, skill manpower for new-age technology, and compete at the global stage. 

"We have the talent, the resources, and a visionary government to build a self-reliant, globally competitive automotive industry. It is now up to us to grab this opportunity and drive the future of mobility, not just for India, but for the world," Takeuchi said.

 

India's auto components exports rose 5.5% to $21.2 bln in 2023-24 (Apr-Mar), while imports increased 3% to $20.9 bln, resulting in a $300-mln trade surplus. In its annual review report released in July, the Automotive Component Manufacturers Association based this "high performance of the sector" on consistent vehicle production, a robust aftermarket, and rising exports.

 

The auto components industry contributes 2.7% to India's GDP and provides employment to over 5 mln people, Minister of Heavy Industries, H.D. Kumaraswamy said, while speaking at the event. "The sector has seen consistent growth despite global challenges and increasing logistics costs. India achieved a trade surplus this fiscal by higher value addition and increased localisation efforts. This shows the sector's resilience," he said. 

 

The government remains committed to making the auto industry a manufacturing and innovation hub globally, Kumaraswamy said. Highlighting the role of India's production-linked incentive scheme in "further boosting industry's vision", he said the scheme had been key in propelling industry to move up the value chain.  

 

IN-SPACe Chairman Pawan Goenka estimates the auto component industry to grow to $1.6 trln by 2047 and auto part exports to touch $500 bln at the same time. "The only way to achieve this is by focusing on exports, making our products globally competitive," he said. Stressing the importance of electric vehicles in achieving sustainability goals, he said this was the only way to meet the net-zero emission target. According to him, the future of trucking was in green hydrogen. 

 

In an attempt to reduce India's dependence on imports, the industry has recognised 50 critical components to be manufactured in India, the president of the Society of Indian Automobile Manufacturers said at the session. Locally available components would reduce India's dependence on imports in line with the auto industry's commitment to 'Atmanirbhar Bharat', and also enhance the component industry's export potential, he said.  End

 

US$1 = 83.96 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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