The Automotive Component Manufacturers Association of India
(ACMA), the apex body of the Auto Component Industry in India has in its recent
findings identified specific export opportunities, estimated at USD 20 billion,
for auto components to select OEMs in China. These findings were part of its
study – ‘Export Opportunities for Made-in-India auto components for China’.
The study, partly funded by Ministry of Commerce, Government
of India was conducted by Avalon Consulting. The study focussed on understanding
the buying behaviour and the market dynamics of the Chinese automotive market
as also competitiveness of the Chinese auto component manufacturers and thereby
ascertaining the feasibility of venturing into the Chinese market.
The report has been
compiled after a rigorous analysis of macroeconomic and trade data with
research in India and China and through numerous meetings with Indian and
Chinese automotive and auto components companies.
Arvind Mehta, Joint Secretary, Department of Commerce,
Ministry of Commerce & Industry, Government of India said that he was glad
that ACMA and its members have overcome the apprehension that India cannot be
competitive vis-a-vis China and have identified it as a target market. “This
initiative will be step forward in bridging the significant trade imbalance
between China and India,” he said
Vinnie Mehta, Director General, ACMA said that “Auto
component is one of India’s traditional export strengths however, India’s trade
deficit in auto components with China has also grown substantially; China’s
auto components exports to India stood at USD 2.6 billion in 2013-14,
contrasted with India USD 300 million, and this trend has remained unaltered
for the last three odd years.” He said increasing labour costs in China, coupled
with improved design capabilities and value addition by Indian auto component
manufacturers presents a favourable opportunity for Indian auto component
manufacturers to explore the Chinese market.
Some of the key highlights from the report are:
•Export opportunity for ‘Made in India’ components has been
estimated at USD 20 billion, of this, the ‘addressable opportunity’ is about
USD 7.5 billion.
•Components such as pistons, con rods and other small engine
hardware, cam and crankshafts, lighting and signalling equipment, shock
absorbers etc. feature in the ‘addressable opportunity’ list.
•Some of the Chinese OEMs ( Lifan – Two wheelers; Beiqi
Foton – Commercial Vehicles , Great Wall
– Passenger Car , WeiChai – Engine manufacturer ) have evinced keen interest in
made in India products.
ACMA had earlier this year organised a ten-member CEOs’
delegation which visited China to engage with the Chinese automotive industry.
During the four days, the delegations interacted with Global and Chinese OEMs,
Chinese component manufacturers, government officials and local industry bodies
to update them on the growing capabilities of the Indian auto component
industry, as well, as further business engagements between the two countries.
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