The Hindu Business Line : Auto components sector doing brisk biz at Expo

THE show-stealers at the ongoing Auto Expo in the Capital may have been the bevy of premium cars on display, but away from the limelight it is the components industry that has been quietly doing the big business at the event.

Auto component delegations from over 24 countries are at the Expo with the main agenda being to identify potential joint venture partners as well as outsourcing opportunities.

"This year's Expo has by far seen the highest amount of interest. There were about 250 pre-arranged meetings. In fact there is a delegation from Sern Auto, our counterpart association in Spain, consisting of over 30 members who are very keen to do business with Indian component makers.

"Similarly, there are delegations from major automobile companies such as Peugeot, Continental and Magna who are keen to outsource from India," Mr A.K. Taneja, President, Automotive Component Manufacturers Association of India (ACMA), said.

Other major participants include a 35-member delegation from Iran, a 79-member delegation from the United Kingdom and a 154-member delegation from Pakistan.

"This time around quality is not an issue with foreign automakers as Indian companies have first-hand experience of supplying to global MNCs such as Ford and General Motors," Mr Taneja said.

India also seems to be scoring vis-à-vis China as companies are looking to outsource from both the countries in order to derisk their business, particularly due to IPR related issues being a major worry in China.

In fact, the visiting Spanish delegation has placed India on the priority list to enhance the internationalisation of Spanish firms.

There were a few concerns also raised by foreign automotive companies, primarily relating to whether Indian companies would be able to scale up to cater to the increase in demand.

It is estimated that the Indian auto components industry will invest about $1 billion towards ramping up capacities and acquiring newer technologies every year for the next 10 years.