ACMA Annual Session
Convert resilience to global competitiveness, SIAM Chandra tells automobile companies
This story was originally published at 11:50 IST on 2 September 2026
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NEW DELHI – Having displayed resilience in the face of challenges, Indian automobile companies should aspire to look beyond just being resilient and convert that to global competitiveness, Shailesh Chandra, the President of Society of Indian Automobile Manufacturers and the managing director of Tata Motors Passenger Vehicles Ltd., said at the 66th Annual Session of the Automotive Component Manufacturers Association of India on Tuesday.
"India's automotive industry has tremendous potential to move towards scale and global leadership. The next phase must be about converting resilience into global competitiveness, technology leadership, scale and global leadership," Chandra said.
As the automotive industry increasingly shifts towards advanced mobility solutions such as electric vehicles, Indian companies need to accelerate in advanced automotive technology, Chandra said. "The vehicle of tomorrow is fundamentally different from the vehicle of yesterday. Electronics, semiconductors, sensors, power electronics, batteries, motors, software, connectivity and advanced materials are becoming increasingly important parts of the value chain," he said.
Creation of value must also happen within India, as this will ensure global competitiveness, he said. Chandra lauded the policy measures undertaken by Centre, such as the production-linked incentive scheme which has focused on boosting domestic value creation and deep localisation.
"Government support can only create an enabling environment. The industry must take the next step by investing in R&D, engineering capabilities, intellectual property and manufacturing scale," Chandra said. Indian companies can manufacture these globally developed technologies in India and cater to the demand globally.
While Indian companies have made progress in localising conventional components, Chandra suggested companies can focus next on moving up the value chain. Citing the example of the rare earth magnet shortage crisis, he said that a relatively small component can become a strategic vulnerability when global supply chains are disrupted.
"We need a comprehensive approach covering raw materials, processing, components, subcomponents and final systems. This is where OEMs (original equipment manufacturers) and component industry need to work together to provide visibility of future technology requirements, enable supplier development and create sufficient scale for domestic manufacturing," he said.
Skilling of personnel should also keep pace with this technological transformation. Additionally, with global customers increasingly evaluating their entire manufacturing footprint, companies should keep a close eye on sustainability in their operations, Chandra said.
"Sustainability will increasingly become a determinant of market access and competitiveness, particularly in export markets. India has an opportunity to build supply chains that are not only cost-competitive but also low-carbon, circular and globally compliant," he said.
At 1133 IST, its shares traded 0.7% lower at INR 307.95 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Anand JC
Edited by Akul Nishant Akhoury
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