To enhance localization, the auto component industry is working closely with SIAM. ACMA Chairman Deepak Jain on Thursday said the industry needs to upgrade its product range to be cost competitive globally.

The program will also help the industry reduce imports of substandard parts, he said while addressing the two-day ACMA Automechanika at the first industry event.

Chairman Jain said, “Close collaboration between the Automotive Component Manufacturers Association (ACMA) and the Society of Indian Automobile Manufacturers (SIAM) to enhance deep localization in the auto component industry will further enhance our price competitiveness in the global market.”

This will not only help in increasing exports but also curb imports of counterfeit and substandard components. This is the reason for better prices, he added.

Jain said that the recently announced PLI scheme is aimed at improving the export competitiveness of the industry by providing incentives to it.

He added, “The entire automobile industry has a revenue of Rs 5,700 crore and an expenditure of Rs 5,700 crore. All these measures will help in exporting automotive components, including aftermarket.”

Jain He said that aftermarket is probably the most dynamic and fastest growing segment of the auto component industry.

Jain The aftermarket is probably the most dynamic and fastest growing segment in the auto components industry, he said. In 2019-20, the automotive components industry recorded sales of $9.8 billion at a compound annual growth rate (CAGR) of 12% and the overall automotive components industry recorded sales of $50 billion at a CAGR of 8%.

“Interestingly, last year was probably the most difficult year for us because of the COVID-19 crisis. While all segments of the industry were hit hard, be it vendors, original suppliers or equipment manufacturers (OEMs) or importers and exporters, the aftermarket remained strong, reflecting its enduring spirit and strong potential.” Jain said.

70 ACMA had several manufacturers and suppliers Automechanika it showcased their latest automotive parts and accessories.

ACMA is organizing this year a two-day virtual exhibition in collaboration with Messe Frankfurt.

Jain “Our partnership with Messe Frankfurt gives our members the opportunity to participate in this and other overseas Automechanika shows to showcase and grow our export business in emerging developed markets.”