The Automotive Component Manufacturers Association (ACMA) on Thursday said it is working closely with Society of Indian Automobile Manufacturers (SIAM) to enhance localisation of various products in order to make the industry price competitive globally.
Speaking at the ACMA Automechanika — the two-day annual event — Deepak Jain, President, ACMA, said that the initiative would also help the industry to reduce imports of sub standards components.
“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,” Jain said.
He said the recently announced production linked incentive (PLI) scheme is aimed at enhancing the industry’s export competitiveness by incentivising the industry.
After market segment
“A huge outlay of ₹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 said adding that the aftermarket segment was probably the most vibrant and fastest growing segment of the auto component industry.
Jain mentioned that in 2019-20, it stood at $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 $50 billion with a CAGR of 8 per cent.
“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.
The two-day virtual fair is participated by 75 manufacturers and are showcasing their latest auto components and accessories. It is providing an insightful outlook on the Indian aftermarket industry, thereby enabling players to identify new opportunities and expand their industry know-how.