Automotive Component Manufacturers Association of India (ACMA), the apex body of the Auto Component Industry in India, hosted its 55th Annual Session & National Conference.
ACMA's Annual Session was addressed by key ministers and functionaries from the automotive industry which included:
- Anant Geete, Hon'ble Union Minister for Heavy Industries & Public Enterprises, Government of India
- Jayant Sinha, Hon'ble Minister of State of Finance, Government of India
- O Suzuki, Chairman & CEO, Suzuki Motor Corporation
- Dr Naushad Forbes, President Designate, CII & Director, Forbes Marshall
- Vinod K Dasari, President, SIAM & Managing Director, Ashok Leyland
- Ramesh Suri, President, ACMA
The theme of the Annual Session was "Make in India: How the Auto Components Industry can Make it Happen". ACMA's joint study with McKinsey on ‘Make in India' - Making it happen' reveals that there is a requirement of concerted action from automotive components manufacturers, automotive OEMs, automotive value-chain partners and policy makers, in order to establish India as a global manufacturing and export hub and to attract investments in range of USD 80 - 100 billion over the next decade to realise Automotive Mission Plan (AMP) 2026 aspirations.
The study also highlighted that the Indian auto component industry could reach USD 200 billion in revenue, USD 80 billion in exports and contribute 10 percent of India's manufacturing GDP by 2026. To realise this goal the industry needs ensure skill development of the existing talent pool, hand hold the tier IIs & IIIs component manufacturers, increase the economic profit and strengthen India's competitiveness as an investment destination for manufacturing by improving ease of doing business.
The joint ACMA-McKinsey study titled ‘Make in India' - Making it happen' which was also the central theme of the session was released at the event by Mr. Anant Geete, Hon'ble Union Minister for Heavy Industries & Public Enterprises.
The study suggests that the auto component sector in India can create economic profit, greater returns than the cost of capital through a nine point agenda elucidated below:
- Graduating from ‘make to print' through frugal innovation
- Grow scale and professionalize for the next wave of cost excellence
- Improve quality capability of Tier-2 and Tier-3 suppliers
- Invest to stay on top of evolution of emission & safety standards/adoption
- Grow plant capacity, people skills and technology to support domestic and global expansion of OEMs
- Build auto-electronics supply capabilities; leverage large aftermarket and execute big moves
- Leading in simplified & low cost technology by "Make in India for the World"
- Build scale & manage cyclicity through M&A and diversification
- Embrace ‘Digital Manufacturing' to transform productivity and quality
Apart from this, the industry ecosystem and the Indian government can collaborate to make India an attractive manufacturing investment destination. ACMA, automotive OEMs, and other value-chain partners can invest in improving the ecosystem by promoting Brand India, creating competitive products (e.g. liability insurance), facilitating quality improvements, embrace digital services and promote competencies in the value chain.