Pankaj Chadha, Chairman of the Engineering Exports Promotion Council, says the auto component sector has to adapt quickly to electrification, even as it emerges as India's top engineering exports contributor.
14 Feb 2025 | 7749 Views | By Yukta Mudgal
As the world’s largest auto show, Bharat Mobility Global Expo 2025, enthralled visitors in Delhi in January, we caught up with Pankaj Chadha, Chairman of the Engineering Exports Promotion Council (EEPC), the driving force behind this massive event. He shared insights on a wide range of topics, including organising such ...
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As the world’s largest auto show, Bharat Mobility Global Expo 2025, enthralled visitors in Delhi in January, we caught up with Pankaj Chadha, Chairman of the Engineering Exports Promotion Council (EEPC), the driving force behind this massive event. He shared insights on a wide range of topics, including organising such a large event, the rising opportunities for India’s engineering export segment, and current geopolitical scenarios. He pointed out that auto components have overtaken steel as the biggest item in India’s engineering exports, and emphasised the urgent need for adapting to electrification trends.
Why three venues at Bharat Mobility this time, and how was the experience?
The reason behind having three venues was simple: we were working with a colossal 200,000 square metres of space. A single venue simply couldn't accommodate that. Even Bharat Mandapam, with its vastness, isn't large enough. This year, we hosted a total of eight exhibitions. Five were at Bharat Mandapam, including the Auto Show, the Tyre Show, the Battery Show, the Cycle Show, and the Steel Show.
Then, we had the Auto Components Show at Yashobhoomi, along with two other exhibitions—the Construction Equipment Show and the Urban Mobility Show. Given the number of shows running concurrently, it would have been impossible to house everything in one place.
On the first working day itself, we welcomed 90,000 visitors, following the inauguration by the Prime Minister on January 17. In all, we crossed five lakh visitors, making this the largest auto show in the world. For the second edition [of an event] to potentially become the largest in the world, is an extraordinary achievement, something that speaks to the hard work of all involved.
What can we expect in the next edition of the Bharat Mobility expo?
Looking ahead, the next Bharat Mobility will be even bigger, with new sectors making their debut—particularly agriculture. Tractors and farming equipment, which play a crucial role in India’s economy, will be an exciting addition. This expansion will provide a much-needed strong rural touch to the exhibition, highlighting the importance of agriculture in India’s growth story.
Shifting gears to exports of engineering goods, how do you see India’s trade evolving amid changing global scenarios?
Looking specifically at engineering exports, we are performing admirably. Engineering exports account for 28% of India's total exports, and from April to November, we've seen close to a 10% growth.
We are on track to hit $125 billion by the end of the year. While India's overall export growth is a bit sluggish at around 2%, engineering exports are thriving at a 10% growth rate. The engineering sector is now the largest contributor to India’s export profile, representing an essential part of the country’s economic engine.
With the global economic shifts, especially the uncertain geopolitical landscape, how are supply chain issues affecting India’s exports, particularly with strained relations with China?
The supply chain situation isn't as problematic as some might assume. That said, MSMEs, which make up about 60% of our membership, could face challenges if safeguard duties are introduced, especially given the high cost of steel which is approximately 60% of their production cost.
As steel prices rise, it could impact their competitiveness. However, at the moment, we're not facing major disruptions. While steel prices remain stable, we'll continue to monitor the situation. MSMEs contribute significantly to our export numbers, and their well-being is central to the overall success of the sector.
What are your thoughts on the China Plus One strategy and the drive for localisation?
The China Plus One strategy is undoubtedly benefiting India. Many European countries and others are diversifying their supply chains after their experience with China during the COVID pandemic. They’re now seeking additional suppliers to mitigate risks, which works in India’s favour.
On localisation, Prime Minister Narendra Modi’s "Make in India" vision is steadily gaining ground. There is a strong push to indigenise what we once imported, and we’re seeing tangible results. With this shift, India’s manufacturing capacity is growing, and industries are becoming more self-reliant.
In terms of export contributions, which sectors are currently leading the charge, particularly among engineering goods like auto components?
There has been a noticeable shift in the top contributors to India’s engineering exports. Historically, steel was the biggest player, but last year, auto components overtook it, accounting for $20 billion of India's engineering exports and making it the number one sector. Steel, now at $19 billion, has dropped to the second place. This marks an important milestone for India's export landscape.
The auto component sector is evolving rapidly. How is the government pushing this sector forward, especially with the rise of electric vehicles (EVs)?
The government is indeed pushing auto components, but there’s a significant shift underway, particularly with the rise of electric vehicles. As EVs become more mainstream, the number of components required in each vehicle is shrinking, with the battery being the dominant cost factor. The auto component sector must adapt quickly to this shift, or they risk being left behind.
Renewable energy is becoming a key global focus. Are there any significant exports in this domain?
Absolutely. In the renewable energy sector, there’s growing momentum. Many companies are now committed to adopting green energy solutions, especially in sectors such as automotive. Electric vehicles (EVs) are leading the charge, with numerous launches. For industrial players, the shift towards clean energy is evident, particularly with MSMEs adopting rooftop solar installations. In fact, we’ve advocated for 100% depreciation on rooftop solar investments for MSMEs to incentivise the switch to green energy.
The government has set an ambitious target of $300 billion in engineering goods exports by 2030. Do you think this target is achievable?
Yes, I firmly believe it is achievable. The government has set an overarching target of $1 trillion in exports by 2030, and engineering goods are projected to account for 30% of that, which amounts to $300 billion. Given the growth we’re seeing in the engineering sector, I am confident we’ll meet this target.
What’s your view on tariffs, particularly in light of President Trump’s statements?
Tariffs, especially the 25% import duty on Indian steel under Section 232, had initially created challenges. However, the exemption granted to Indian steel by President Biden during his meeting with our Prime Minister significantly improved our export prospects to the US, which now accounts for 20% of India’s engineering exports. With Trump’s return, the future remains uncertain, but we will cross that bridge when we get there. For now, we’re optimistic about continuing our growth trajectory.
India is eyeing reconstruction efforts in Ukraine. How do you see this as an opportunity for Indian exports?
The war in Ukraine has indeed opened up new opportunities. Take Russia, for example—due to the European embargo, we were able to initiate rupee trade with them, dramatically boosting exports to Russia.Regarding Ukraine, we’re waiting for the war to end before considering reconstruction. If Ukraine is willing to engage in reconstruction projects, we’re ready to offer products.