Optimism prevails
The future of auto industry is promising as the industry seems to be in the recovery mode with some faint light at the end of the tunnel. It may be due to the fourth quarter seasonality, the recoveries are visible especially in passenger cars and commercial vehicles. It is also very clear that the support from the central government reflects in the overall sales figures. At the annual convention of Automotive Components Manufacturers Association of India (ACMA) and Society of Indian Automobile Manufacturers (SIAM) held last month, the industry top guns and the Union Ministers, had a common thought of taking the auto industry to the next level. Government of India and the Indian Automotive Industry jointly presented the curtain raiser for the Automotive Mission Plan 2016-26 (AMP 2026) during the convention.
The document is aimed at setting targets and goals for this sector over the next 10 years. The study also reveals that the Indian auto component industry could reach USD 200 billion in revenue, out of that USD 80 billion will be from exports and contribute 10% of India’s manufacturing GDP by 2026. The document addresses areas of relevance including growth in terms of size, contribution to India’s development, global environmental footprint, technological maturity, safety, competitiveness, and institutional structure and capabilities. Therefore, to make the document realistic, players in the auto sector need to focus sharply and continue to specialise in their core competencies rather than become weary of wearing many hats.
The focus of this issue is North India, where the region is expanding its wings by adding more clusters. The region evolved after Maruti Suzuki established their manufacturing facility in Manesar in 1980s. Later on the region witnessed a lot of investments from the Japanese OEMs like Honda Cars, Yamaha and Honda Motorcycles. To support these OEMs, lot of component makers migrated to NCR from Chennai and Pune, and spread across Haryana, Uttar Pradesh and Delhi. Each state in the region has its own pros and cons.
Therefore the newcomers are looking at Rajasthan as the power availability is better besides competitive land price. In addition, close to 40% of the Delhi- Mumbai corridor pass through the state that propels better economical activity. There needs to be joint initiatives amongst the states for NCR to continue to maintain its status of leading automotive hub in the county. The issue is packed with a lot of stories especially from the northern region and we have tried to give you the best by lettering lot of interesting stories like our other issues.
Wishing you much pleasure reading. Do send us your feedback.
Bhargav TS
Executive Editor
s.bhargav@nextgenpublishing.net
