Automotive Component Manufacturers Association of India (ACMA) conferences focused on challenges & opportunities for auto component industry in the emerging mobility scenario.
The apex body of the auto component industry in India, Automotive Component Manufacturers Association of India (ACMA) hosted its 57th annual session & national conference on the theme of ‘Future of mobility in India: Challenges & opportunities for auto component industry’ on September 8, 2017 in New Delhi.
ACMA’s annual session was addressed by senior government officials and eminent leaders from the automotive industry which included Vishvajit Sahay (Joint Secretary, Department of Heavy Industries, Government of India); R C Bhargava (Chairman, Maruti Suzuki India Ltd); Dr Abhay Firodia (President SIAM & Chairman, Force Motors); Shobhana Kamineni (President CII & Executive Vice Chairperson, Apollo Hospitals), Prof Ashok Jhunjhunwala (Principal Advisor, Ministry of Power & New and Renewable Energy, Government of India), Rattan Kapur (President, ACMA & Chairman & Managing Director, Mark Exhaust Systems Ltd) and Nirmal Minda (Vice President, ACMA & CMD, Minda Industries).
ACMA’s study conducted by McKinsey & Co themed ‘Future of E-mobilty’ was released by the Chief Guest, Vishvajit Sahay along with other luminaries. The study reveals that globally, majority of experts believe that the auto industry will be disrupted with trends like shared mobility, autonomous driving, connectivity and electrification in our future vehicles. These trends will have a major impact on the value chain, resulting in market shift and revenue pools. The role of OEMs and suppliers will fade by 2030, leading to an emergence of new players, gaining a significant share of revenues and profits of the automotive industry. The driving force towards this change in mobility will be collaboration and innovation with auto suppliers.
Auto component makers, the Change Agent
Speaking on the occasion, Vishvajit Sahay said, “The auto industry plays an important role in contributing to the country’s GDP where it contributes 7.1% and out of this auto component contributes 2.1% upwards. The Indian automotive industry is poised to change now. We need to view this change as an opening of new opportunities. For this the industry needs to be not only technology-ready, but also capacity-ready. To be able to succeed in doing so we need to acquire & train the workforce while creating new avenues for skill development as well. The government expects the automobile industry to act as the prime contributor to the Make in India movement and is ready to support the industry in every possible manner.”
Expressing optimism on the front of e-mobility, Rattan Kapur stated, “We at ACMA believe that while the future is electric, however the logical progression would be to move from IC-engines to hybrids and then to fully-battery based vehicles. This will provide the local industry with the opportunity to develop and best acquire technologies for the future generation of vehicles. A long-term stable technology-agnostic roadmap for the automotive industry driven by a sound regulatory framework is therefore the need of the hour so that the industry can invest for sustainable growth and development, in line with the aspirations of all stakeholders.”
Kapur added, “There is a fundamental need to preserve the environment for our future generations and are committed to it. For the auto component industry this may imply drastic changes for many individual players. Time has come for each of us in the industry to accept this new business environment and gear ourselves to cater to the new demands of the future.”
Commenting on the future of mobility, Dr Abhay Firodia said, “Today, we stand facing a massive technological transformation, which is coming our way. This leap towards e-mobility is bound to happen sooner or later, the correct way to do it would be a gradual transition. Policy environment should lead to the betterment of the nation and its customers. These new technologies already exist and are reasonably mature and can be implemented in a matter of few years but the industry needs clarity so that both OEMs and auto component manufacturers could plan for the change accordingly.”
In his keynote address, R C Bhargava, Chairman, Maruti Suzuki India Ltd, emphasised, “As the vehicle population is increasing, the need to import the crude oil is also increasing. Crude oil being a non-renewable resource is limited in nature, thereby, building a need to shift to a more sustainable and environment friendly alternative. It is in our government’s long term interest to accept electric mobility as an alternate means of transport and we as an industry need to acknowledge the challenge to make it happen.”
However, Bhargava cautioned that there were a few challenges, which need to be addressed before the industry embarks on the journey of electric mobility for India. Firstly, battery is the main element of electric vehicles and it is the low cost of battery that will determine the sales of the vehicle and secondly, the charging infrastructure should be available for the convenience of using the vehicle. “The government of India is also strategising on an innovative idea of battery swapping which needs to be looked upon. To make this shift, we need to work together with the government and see what impact does the EV policy has on its customers in the future,” said Bhargava.
Collaborate for bright future
According to Shobana Kamineni, while the automotive sector is being disrupted by technologies and platforms, business models are also redefining mobility. “The Indian automotive industry is at the crossroads, but the tectonic shifts that it witnesses pose huge opportunities for us to create a dominant position in the world in this sector. The 3Cs – collaboration, cooperation and creativity present many opportunities for ACMA and CII to work together to influence mobility as we know it. We would also like to partner with ACMA to help enhance competitiveness, build a smart manufacturing campaign and develop skilled workforce to address future challenges,” she said.
Launched at the Annual Session, the McKinsey’s revealed that e-mobility is already shaping the automotive industry around the world and in India. The transition will happen from ICE (Internal Combustion Engine) to Hybrid Vehicles to BEV (battery electric vehicles). This trend is more visible in 2 wheelers, 3 wheelers and passenger vehicles, however commercial vehicles, tractors and MHCVs will take longer for the transition. On the dimension of innovation, the best should be extracted out of internal and external partnership sources. Also, all stakeholders should work together to formulate policies that support indigenous development of technology over import dependence. The need of the hour is sustainability over speed.
The annual session & national conference concluded on a high note witnessing over 1300 participants. Eminent speakers from industry and government who graced the event included Dr Pawan Goenka (MD, Mahindra & Mahindra); Vikram Kasbekar (Executive Director, Hero Motocorp); Thomas Flack (Chief Purchasing Officer, Tata Motors); Jan O Röhrl (Chief Technology Officer and Head of Mobility Solutions Business India and Additional Director, Bosch); Jayant Davar (Past President ACMA, Co-Chairman & MD, Sandhar Technologies); Ashok Taneja (MD & CEO, Shriram Pistons & Rings); Arvind Balaji (Joint MD, Lucas TVS);. etc. The Automotive Component Manufacturers Association of India (ACMA) is the apex body representing the interest of the Indian Auto Component Industry. Its active involvement in trade promotion, technology up-gradation, quality enhancement and collection & dissemination of information has made it a vital catalyst for this industry’s development. ACMA’s charter is
to develop a globally competitive Indian auto component Industry and strengthen its role in national economic development as also promote business through international alliances.
Indian perspective on e-mobility
In the case of India, four key forces could determine the future e-mobility landscape: