Page 7 - ITLN November - December 2023 for the magzter

he essence of India's raw materials and electronics, like
automotive industry policies the policies the discussions were also
revolves around localisation, centred around localisation.
Twhich is the heart of Anant Swarup, joint secretary at
the government's approach. There the Ministry of Heavy Industries and
is substantial potential for domestic the Department of Commerce, said,
value addition within the country. The “There is a greater possibility for
growth trajectory is marked by advanced further increased localization in the
automotive components and R&D in this auto industry and there is a potential to
sector must be promoted.” achieve this across OEMs."
This is how Hanif Qureshi, joint The Indian automobile industry
secretary at the Ministry of Heavy contributes 7.1 percent of India’s
Industries, addressed the Automotive GDP and accounts for 49 percent of
Sourcing Conclave organised by the country’s manufacturing GDP. This is the best time
the Society of Indian Automobile The Indian automobile sector has
Manufacturers (SIAM) on November grown into a ₹8.7 lakh-crore ($108 to invest and scale
21, 2023. billion) industry by producing 2.7 crore localisation for
While the conference themed around vehicles in FY23. Meanwhile, driven by Indian auto OEMs
"Towards Building a Resilient Supply the growing demand and exports, the and auto components
Chain'' discussed several sourcing and automotive component industry in FY23 manufacturers.
supply chain strategies for transmission, registered the highest-ever turnover of
Sunil Kakkar
Maruti Suzuki India

₹5.6 lakh crore ($69.7 billion), indicates
the numbers from the Automotive
Component Manufacturers Association
of India (ACMA). However, while exports
grew by 5.2 percent to ₹1.61 lakh crore
($20.1 billion), imports of automobile
components also grew by 10.9 percent
to ₹1.63 lakh crore ($20.3 billion). The
imports include auto components such
as engine parts, drive transmission and
steering, electricals and electronics
while China remains the top source for
these imports.
Thus, in September 2023, commerce
and industry minister, Piyush Goyal,
asked the auto manufacturers not to
import components unnecessarily,
particularly when the exporting country
is not giving the same access to Indian
players, during the annual convention
of SIAM.
Sunil Kakkar, senior executive
director at Maruti Suzuki India, said,
“This is the best time to invest and scale
localisation for Indian auto OEMs and
auto components manufacturers.”
Talking about the sourcing trends
in automatic transmission and its
growing demand, Sachin Kulkarni,
senior executive director at Skoda Auto
Volkswagen India, noted that SIAM,
ACMA, and the Indian Government
need to form one team to work
together to promote localisation of
automatics in India.
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