The auto component industry and SIAM are working closely to enhance the localisation of various products in order to make the industry price-competitive globally, ACMA President Deepak Jain said on Thursday.
Speaking at the inaugural session of the two-day industry event ACMA Automechanika, he noted that the initiative would also help the industry to reduce imports of sub-standard components.
"The Automotive Component Manufacturers Association (ACMA) and Society of Indian Automobile Manufacturers (SIAM) are working closely to enhance deep localisation in the auto component sector which will further increase our price competitiveness in the global market," Jain said.
This will not only help us in enhancing exports but will also help curb import of spurious and sub-stand components that are imported solely for the reason of being better priced, he added.
Jain said the recently announced PLI scheme is aimed at enhancing the industry's export competitiveness by incentivising the industry.
"A huge outlay of Rs 57,000 crore has been made for the entire automotive industry. All these measures augur well for auto components exports including those for the aftermarket," he added.
Jain said that the aftermarket segment was probably the most vibrant and fastest-growing segment of the auto component industry.
In 2019-20, it stood at USD 9.8 billion, with a compound annual growth rate (CAGR) of 12 per cent while the overall turnover of the auto component industry stood at USD 50 billion with a CAGR of 8 per cent, he noted.
"It is interesting to note that last year, which was probably the most challenging year for us due to the outbreak of the pandemic, all segments of the industry, be it supplies to original equipment manufacturers (OEMs), or exports or the imports, suffered badly, however, the aftermarket remained robust. This reflects the undying spirit of the aftermarket as also its strong potential," Jain said.
Over 70 manufacturers and suppliers are showcasing their latest auto components and accessories in the ACMA Automechanika.
ACMA has partnered with Messe Frankfurt for the two days virtual fair this year.
"Our partnership with Messe Frankfurt also provides our members with the opportunity of not only participating in this show but also to participate in other overseas Automechanika shows held in emerging as well as developed markets and grow their exports business," Jain noted.
Source:economictimes.indiatimes.com