The Auto Expo 2023 has been one of the most successful auto shows of the year showcasing the vibrancy and resilience of the Indian automotive component sector, and ACMA’s contribution to this event has been truly remarkable. Sunjay Kapur, discusses ACMA’s involvement in the Auto Expo and how the Indian auto component sector is agile and inventive in preparing for the future evolution of the automotive ecosystem.
Congrats on the remarkable success of Auto Expo 2023! It was inspiring to see how the event brought together such a large number of industry players, indicating a strong commitment to the sector and its future. From your perspective as the event organiser, how would you evaluate the success of the Auto Expo and how do you envision these expos catalysing the growth of the industry?
The Auto Expo 2023 Components exhibition has become a prominent platform that showcases India’s engineering and manufacturing capabilities. This year, the exhibition’s theme, ‘Technovation’, perfectly captures the shift in the automotive industry towards clean technology, software, connected, autonomous, and shared mobility, as well as electrification, through impressive displays and pavilions.
As the largest auto component show in the country, it featured cutting-edge technology, research and development, home-grown solutions, sustainable and ethical production, and much more. Visitors were thrilled to witness intelligent and innovative technological solutions for safer driving, which are expected to play an increasingly vital role in the future. The show highlights the Indian auto component industry’s confidence in and preparedness for the future of mobility.
May we have your thoughts on knowledge and technology transfer in the automotive aftermarket?
The rapid growth of on-demand mobility and its related services in recent years, as well as future expectations for these services, offer automakers new sources of revenue.
Currently, an average of 84% of revenue for automotive companies comes from traditional sales, 5% from mobility services, and the remaining 11% from other services. Looking ahead to 2030, the percentage of revenue from traditional sales is projected to decrease to 78%, with mobility services doubling to 10% and other services remaining steady at 12%. This means that, for a company with a total revenue of US$ 100 mln, mobility services could potentially bring in an additional US$ 5 mln, not including overall revenue growth between 2019 and 2030. [1]
The automotive industry is currently focused on trends such as autonomous driving, electric mobility, and networked driving. This presents a significant opportunity for companies to excite their customers, lead the way in technology and innovation, and sustainably profit in the market in the long term. Aftermarket companies are also contributing to the digital transformation of the automotive ecosystem and shaping it in a positive way.
Overall, it is evident that competitiveness in the industry is ultimately determined by digital transformation. Being agile and innovative is crucial for companies to stay ahead in today’s market.
Please provide us with a brief overview of ACMA and its initiatives within the Indian automotive industry.
The Automotive Component Manufacturers Association of India (ACMA) serves as the apex organisation that advocates for the interests of the Indian Auto Component Industry. Its membership comprises over 815 manufacturers, contributing to more than 85% of the auto component industry’s turnover in the organised sector. ACMA has been certified with an ISO 9001:2015 quality management system.
ACMA’s primary objective is to enhance the competitiveness of the Indian Auto Component Industry and strengthen its role in the country’s economic development. To achieve this goal, ACMA strives to establish international business alliances and promote technology upgradation in the sector. ACMA is committed to building an Atmanirbhar Bharat, and their active association with the Indian government, trade alliances, and technology initiatives offer opportunities to explore the potential of the dynamic industry. Together, they aim to ensure that all components are 100% made in India, eventually making India a global factory.
This year, ACMA participated in several international trade-fairs and business delegations, supported by the Ministry of Commerce and Industries under its MAI scheme. ACMA’s recent export development initiatives in various countries, including the US, Germany, UAE, UK, Japan, and Taiwan, have been well received, thanks to the support of the Indian embassies and missions in those locations.
How would you review Union Budget 2023?
The Union Budget outlines a plan for a digitally advanced and self-reliant India, while also implementing initiatives that promote sustainable and inclusive growth at a rapid pace. The focus on exports, manufacturing, local value addition, and green energy and mobility are all steps in the right direction. Additionally, the proposed changes to personal income tax will increase consumers’ purchasing power, which should further stimulate economic growth.
Furthermore, the budget’s emphasis on green energy and mobility is highly encouraging, given the measures being taken to promote li-ion cell manufacturing, the scrapping of government vehicles, and a focus on hydrogen, ethanol blending, and biogas, among other things. These initiatives represent a significant step towards achieving the Prime Minister’s vision of a carbon-neutral India by 2070, while
also promoting growth and inclusivity.
Source:
- IBM’s report “Automotive 2030”
