The Automotive Component Manufacturers Association of India (ACMA) has announced the findings of its study – ‘Export Opportunities for Made-in-India auto components for China’.
21 Nov 2014 | 1400 Views | By Autocar Pro News Desk
The Automotive Component Manufacturers Association of India (ACMA) has announced the findings of its study – ‘Export Opportunities for Made-in-India auto components for China’.
The study, partly funded by the Ministry of Commerce, government of India, was conducted by Avalon Consulting that focussed on understanding the buying behaviour and ...
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The Automotive Component Manufacturers Association of India (ACMA) has announced the findings of its study – ‘Export Opportunities for Made-in-India auto components for China’.
The study, partly funded by the Ministry of Commerce, government of India, was conducted by Avalon Consulting that 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 identifies specific export opportunities, estimated at US$ 20 billion (Rs 122,800 crore), for auto components to select OEMs in China. 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.
On the occasion, Arvind Mehta, joint secretary, Department of Commerce, Ministry of Commerce & Industry, said, “I am glad that ACMA and its members have overcome the apprehension that India cannot be competitive compared to 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.”
Commenting on the report, Vinnie Mehta, director general, ACMA said, “Auto components 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 US$ 2.6 billion (Rs 15,964 crore) in 2013-14, contrasted with India US$ 300 million (Rs 1,842 crore), and this trend has remained unaltered for the last three odd years. Increasing labour costs in China, coupled with improved design capabilities and value addition by Indian auto component manufacturers present 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 US$ 20 billion, of this, the ‘addressable opportunity’ is about US$ 7.5 billion (Rs 46,050 crore).
- Components such as pistons, con rods and other small engine hardware, cam and crankshafts, lighting and signalling equipment and shock absorbers feature in the ‘addressable opportunity’ list.
- Some Chinese OEMs ( Lifan – two-wheelers; Beiqi Foton – commercial vehicles, Great Wall – passenger cars, WeiChai – engine manufacturer ) have evinced keen interest in made-in-India products.
As part of its several initiatives to grow and develop the Indian component industry, ACMA earlier this year had organised a 10-member CEOs’ delegation which visited China to engage with the Chinese automotive industry. During the four days, the delegation 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.