The Hindu Business Line : India may partner Germany to boost auto exports

New Delhi, Sept. 21 In an effort to boost exports, and gain access to technology to fuel the growth of the auto industry, the Government is considering to partner with Germany, Europe’s largest automotive nation.

“We are looking at collaborating with Germany to access the world automobile market,” Dr Surajit Mitra, Joint Secretary, Ministry of Heavy Industries and Public Enterprises, told Business Line. He said that while Germany was a major automotive exporter, India could give German companies an advantage in terms of labour and cost competitiveness to tap the overseas markets from here.

Speaking in the context of his recent visit at the Frankfurt Motor Show, he said that the Indian Government would offer support in infrastructure such as Special Economic Zones and power, besides the country’s cost advantage, to companies looking to expand their base here.

The Society of Indian Automobile Manufacturers (SIAM) and its German counterpart, VDA, which set the agenda jointly for both the countries at the motor show, are now exploring areas of co-operation such as high quality fuel, raising the proportion of renewable fuels and working towards harmonisation of automotive regulations.

“We are looking to work in the areas of alternative fuel, powertrain technology and explore areas in which we could jointly partner in the proposed Centres of Excellence that the Government plans in the coming years,” said Mr Dilip Chenoy, Director-General, SIAM.

While the German Automobile Association expressed concern over homologation requirements in India, SIAM said it would address these concerns as well as work with the German body to facilitate implementation of projects related to National Automotive Testing and R&D Infrastructure Project (NATRIP) and the Automotive Research Authority of India.

As per the latest KPMG- FICCI paper released this month, Germany accounts for 51 per cent of the European OEM market and 25 per cent of the aftermarket. India is a home to most German automobile companies including DaimlerChrysler, BMW and Bosch .

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