Latest news with #AutomotiveComponentManufacturersAssociationofIndia
Time of India
5 days ago
- Automotive
- Time of India
Auto 4.0 needs people 4.0: ACMA President Shradha Suri Marwah
As India's auto component industry transitions into a new era of digitisation, automation, and sustainability, its most urgent challenge isn't just technological, it's human. And, reskilling is key to staying ahead in the innovation curve, according to Shardha Suri Marwah, President of the Automotive Component Manufacturers Association of India (ACMA), and MD of Subros. 'Our entire industry is going through a transformation. The way we did manufacturing in the past no longer exists,' says Shradha. "Reskilling is not just important. It is central to how we move forward," she adds. Marwah, who also chairs the board at Subros Ltd, emphasises that the sector's preparedness hinges on workforce evolution. 'Some jobs will get lost and new ones will get created. That's why reskilling is required. You reskill people and use them for something else. Human capital will continue to create the most of value,' she says. The challenge is more acute for smaller firms. 'Tier 1s align quickly. But Tier 2s and Tier 3s need structured support. That's where ACMA comes in to help the industry rise together,' she explains. ACMA's Annual Report 2023–24 shows how seriously the industry is taking this task. Over 2,400 man-days of skilling and upskilling workshops were conducted across clusters, focusing on lean manufacturing, digital quality systems, and emerging environmental norms. AI, automation, and the human equation Even as Indian suppliers automate and digitise, workforce anxiety remains real. 'AI is disruptive. It's coming in fast,' says Marwah. 'But that doesn't mean we're replacing people. It means we're changing the kind of work they do.' She adds that traditional manufacturing is not disappearing. It's expanding. 'As scale increases, traditional production will still have a major role. Automation will work alongside, not instead of, human capital. The pie is growing.' India's domestic vehicle production supports this view. As per ACMA's report, the country's vehicle production and aftermarket sales grew robustly in FY24, even amid external volatility. The auto component sector saw 9.6 per cent growth, reaching ₹5.6 lakh crore, despite softened exports and rare earth shortages. Digitisation vs sustainability? Shradha is clear that while automation may support sustainability, but it doesn't define it. 'You're just playing with words there,' she says. 'Sustainability is a much larger journey. It starts from how you design the product, what materials you use, and then how you manufacture it.' For smaller players outside the direct supply chain grid, Marwah admits it's harder. 'When pipelines aren't clear and visibility is low, it's difficult to prioritise sustainability. But many RFQs now include sustainability clauses. So Tier 1s are having to handhold their Tier 2s. The entire value chain is aligning.' The ACMA report highlights that ESG-readiness, compliance mapping, and traceability are now demanded not just by global OEMs but also by domestic partners aspiring for export-grade standards. 'Sustainability, green materials, clean processes, everything is changing. And the skills needed to work with these new materials are changing too,' she says. 'Investment will follow scale, not noise' With the ongoing debate on EVs, hydrogen, ethanol and ICE, some suppliers remain uncertain where to place their bets. Marwah advises pragmatism. 'The PV market was about 4 million units. It's going to grow to 7 million. Out of that, EVs and alternate fuels will be around 1 million. That still means traditional platforms will grow from 4 to 6 million. So don't get confused. Investment decisions will follow scale, not buzz.' This clarity, she believes, will help lower-tier suppliers make informed decisions. 'Don't chase headlines. Follow the data,' she urges. The past year tested the sector's resilience, zero rare earth magnet imports since April, rerouted logistics that doubled lead times, and trade uncertainties. 'We usually don't pull the plug on investments unless there's a COVID-like disruption,' Marwah points out. 'The domestic industry is doubling. So, scale must happen. And the industry is investing in advance.' Still, she stresses that uncertainty will remain a constant. 'There are FTAs on one hand and tariffs on the other. What's in our control? Our people, our plants, our processes. That's where transformation must begin.' Rather than dictate direction, ACMA sees itself as an enabler. 'Every organisation must define its own roadmap. Our job is to provide the platform, for awareness, for training, for any skill required in this transition,' says Marwah. 'The opportunity is there. But we must keep pace. Reskill, digitise, go green, but do it together. That's how India's auto component industry will truly lead," she concludes.
Mint
7 days ago
- Automotive
- Mint
Govt planning incentive scheme to buoy auto parts exports amid Trump tariff shock
Next Story Manas Pimpalkhare , Ayaan Kartik As part of the scheme, the government might consider incentivising manufacturing of specific auto parts that are exported the most such as engine components. Moreover, specific export-oriented fiscal sops might also be introduced. The government might consider incentivizing manufacturing of specific auto parts that are exported the most such as engine components. Gift this article New Delhi: The government has started working on an incentive scheme to boost exports for India's $111-billion automotive components industry amid trade uncertainties unleashed by American president Donald Trump's steep import tariff, three people aware of the development said. New Delhi: The government has started working on an incentive scheme to boost exports for India's $111-billion automotive components industry amid trade uncertainties unleashed by American president Donald Trump's steep import tariff, three people aware of the development said. As part of the scheme, the government might consider incentivizing manufacturing of specific auto parts that are exported the most such as engine components. Moreover, specific export-oriented fiscal sops might also be introduced. The discussion is in initial stages and nothing is finalized about the scheme yet, the people cited earlier said on the condition of anonymity. 'The ministry of heavy industries and the ministry of MSME (micro, small and medium enterprises) have started discussing a new scheme which will benefit Indian automobile component manufacturers, but the corpus of the scheme has not been decided yet," said the first person. 'Discussions have started on making a new scheme for components and eventually the industry will be actively roped in. Currently, there is work going on to identify target products and geographies for export among Indian auto components," said the second person. The US has imposed a 25% tariff on all automobile imports into the country, disrupting global trade, and throwing Indian auto component makers into a fog of uncertainty. India's auto parts makers exported goods worth $22.9 billion in FY25, a rise of 8%. Of this, $7.35 billion worth of goods were exported to the North American region, as per the Automotive Component Manufacturers Association of India (ACMA). The government's move also comes at a time when India's domestic automobile market has overtaken Japan in sales to become the third-largest in the world after the US and China, but the nation's auto parts exports have hovered around the 3-4% of the global export market, according to a NITI Aayog study in April this year titled 'Automotive Industry: Powering India's participation in Global Value Chains". Also Read | Automakers boost South Korean shares higher Queries emailed to the spokespersons of the ministries of heavy industries and MSME remained unanswered till press time. These auto parts manufacturers, a significant number of which are MSMEs, make and export engine components, drive transmission and steering systems. 'In components, we need to leverage our strengths in ICE (internal combustion engine) along with increasing presence in emerging trends like EV (electric vehicle) components and electronification. A lot of markets are open to importing classical vehicle components from India which will help in boosting exports. Any help in exports will help boosting the auto component industry's prospects to achieve the target of $100 billion exports," said Natarajan Sankar, managing director and partner at Boston Consulting Group. India's auto components industry aims to achieve $100 billion in exports by 2030. Top exporters of components from the Indian market include Sona Comstar, Bharat Forge, Uno Minda and Bosch India, among others. India's auto components industry's turnover has doubled from FY20 to FY25 at a compounded annual growth rate of 14%, according to ACMA. In FY25, the component industry's sales to vehicle makers rose 88% to ₹ 5.70 trillion from ₹ 3.02 trillion in the previous fiscal, according to ACMA data. The government's move comes in the backdrop of NITI Aayog's recommendations in April this year for boosting exports of India's auto parts industry. NITI Aayog recommended fiscal incentives to manufacturers to boost their operational and capital expenditure to achieve scale in making engine cylinders, valves and pistons and to procure tools and dies. In a report, the top government policy think tank stated that there should be efforts to attract overseas talent and motivate high-level talent to return to India, as a part of non-fiscal skilling incentives. It noted that India's auto component exports are worth about $20 billion, while imports are worth about the same, resulting in a near-neutral trade ratio of 0.99. But, India's industry faces competitive headwinds compared to China, the report also highlighted. It pointed at cost disabilities of nearly 10% compared to China. Additionally, there is an extra cost disadvantage for India of approximately 20% on equipment (capital goods) required for component manufacturing, compared with China, due to material cost disability, NITI Aayog said. 'China benefits from a well-integrated supply chain, spanning from raw minerals to high-value-added products, whereas India lacks such depth in its supply ecosystem," said the report. The report also set a target of auto parts production worth $145 billion and exports worth about $60 billion by 2030. But, manufacturers face tough times as the effectiveness of schemes to boost auto parts productions are often misaligned with the specific needs of the sector, the report noted. 'Indian companies and components face a cost handicap of 10% and to bridge this gap, there is a need to provide fiscal incentives for auto component manufacturing," said the report. Earlier, prime minister Narendra Modi, at the launch of the Digital Mobility Initiative for Automotive MSMEs in February 2024, had said that the significance of the automobile industry to the nation's economy is mirrored in the role played by MSMEs within this sector. 'Today, components manufactured by Indian MSMEs are integrated into vehicles worldwide, opening doors to numerous global opportunities," he had said. The government's focus on the auto components sector also comes amid a rapid shift towards cleaner powertrains in vehicles. The shift towards cleaner fuels to decarbonize the auto sector is apparent, with the sales of electric vehicles in India rising 17% in FY25, considerably higher than the 4% sales growth in petrol and diesel vehicles during the same period. Topics You May Be Interested In Catch all the Auto News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
Mint
15-07-2025
- Automotive
- Mint
Govt planning incentive scheme to buoy auto parts exports amid Trump tariff
New Delhi: The government has started working on an incentive scheme to boost exports for India's $111-billion automotive components industry amid trade uncertainties unleashed by American president Donald Trump's steep import tariff, three people aware of the development said. As part of the scheme, the government might consider incentivizing manufacturing of specific auto parts that are exported the most such as engine components. Moreover, specific export-oriented fiscal sops might also be introduced. The discussion is in initial stages and nothing is finalized about the scheme yet, the people cited earlier said on the condition of anonymity. 'The ministry of heavy industries and the ministry of MSME (micro, small and medium enterprises) have started discussing a new scheme which will benefit Indian automobile component manufacturers, but the corpus of the scheme has not been decided yet," said the first person. 'Discussions have started on making a new scheme for components and eventually the industry will be actively roped in. Currently, there is work going on to identify target products and geographies for export among Indian auto components," said the second person. The US has imposed a 25% tariff on all automobile imports into the country, disrupting global trade, and throwing Indian auto component makers into a fog of uncertainty. India's auto parts makers exported goods worth $22.9 billion in FY25, a rise of 8%. Of this, $7.35 billion worth of goods were exported to the North American region, as per the Automotive Component Manufacturers Association of India (ACMA). The government's move also comes at a time when India's domestic automobile market has overtaken Japan in sales to become the third-largest in the world after the US and China, but the nation's auto parts exports have hovered around the 3-4% of the global export market, according to a NITI Aayog study in April this year titled 'Automotive Industry: Powering India's participation in Global Value Chains". Queries emailed to the spokespersons of the ministries of heavy industries and MSME remained unanswered till press time. These auto parts manufacturers, a significant number of which are MSMEs, make and export engine components, drive transmission and steering systems. 'In components, we need to leverage our strengths in ICE (internal combustion engine) along with increasing presence in emerging trends like EV (electric vehicle) components and electronification. A lot of markets are open to importing classical vehicle components from India which will help in boosting exports. Any help in exports will help boosting the auto component industry's prospects to achieve the target of $100 billion exports," said Natarajan Sankar, managing director and partner at Boston Consulting Group. India's auto components industry aims to achieve $100 billion in exports by 2030. Top exporters of components from the Indian market include Sona Comstar, Bharat Forge, Uno Minda and Bosch India, among others. India's auto components industry's turnover has doubled from FY20 to FY25 at a compounded annual growth rate of 14%, according to ACMA. In FY25, the component industry's sales to vehicle makers rose 88% to ₹5.70 trillion from ₹3.02 trillion in the previous fiscal, according to ACMA data. The government's move comes in the backdrop of NITI Aayog's recommendations in April this year for boosting exports of India's auto parts industry. NITI Aayog recommended fiscal incentives to manufacturers to boost their operational and capital expenditure to achieve scale in making engine cylinders, valves and pistons and to procure tools and dies. In a report, the top government policy think tank stated that there should be efforts to attract overseas talent and motivate high-level talent to return to India, as a part of non-fiscal skilling incentives. It noted that India's auto component exports are worth about $20 billion, while imports are worth about the same, resulting in a near-neutral trade ratio of 0.99. But, India's industry faces competitive headwinds compared to China, the report also highlighted. It pointed at cost disabilities of nearly 10% compared to China. Additionally, there is an extra cost disadvantage for India of approximately 20% on equipment (capital goods) required for component manufacturing, compared with China, due to material cost disability, NITI Aayog said. 'China benefits from a well-integrated supply chain, spanning from raw minerals to high-value-added products, whereas India lacks such depth in its supply ecosystem," said the report. The report also set a target of auto parts production worth $145 billion and exports worth about $60 billion by 2030. But, manufacturers face tough times as the effectiveness of schemes to boost auto parts productions are often misaligned with the specific needs of the sector, the report noted. 'Indian companies and components face a cost handicap of 10% and to bridge this gap, there is a need to provide fiscal incentives for auto component manufacturing," said the report. Earlier, prime minister Narendra Modi, at the launch of the Digital Mobility Initiative for Automotive MSMEs in February 2024, had said that the significance of the automobile industry to the nation's economy is mirrored in the role played by MSMEs within this sector. 'Today, components manufactured by Indian MSMEs are integrated into vehicles worldwide, opening doors to numerous global opportunities," he had said. The government's focus on the auto components sector also comes amid a rapid shift towards cleaner powertrains in vehicles. The shift towards cleaner fuels to decarbonize the auto sector is apparent, with the sales of electric vehicles in India rising 17% in FY25, considerably higher than the 4% sales growth in petrol and diesel vehicles during the same period.
Economic Times
09-07-2025
- Automotive
- Economic Times
National plan for key materials needed to secure EV future: Auto parts makers
Indian auto parts manufacturers are urging the government to develop a national strategy for critical materials, particularly rare earth magnets, essential for electric vehicle production. This call to action comes in response to China's export restrictions, which have disrupted global supply chains. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: Auto parts makers are urging the Centre for a national strategy on critical materials to secure the future of automobile manufacturing in the country including electric vehicles . This follows China restricting exports of rare earths, disrupting global supply chains at industries reliant on rare earth magnets like Suri Marwah, president, Automotive Component Manufacturers Association of India (ACMA) said while auto parts makers are continuing to invest in value addition, technology upgradation, and localisation to align with evolving customer needs and global supply chain dynamics, the shortage of rare earth magnets is proving to be a challenge."The limited availability of rare earth magnets is a concern, underscoring the need for national strategy on critical materials to secure EV's future and mobility manufacturing in India," said Marwah, also MD of auto parts maker Subros She said India has adequate raw materials for making rare earth magnets and can attain self-sufficiency if processing centres are set up. "The industry is agile and has also started working on alternate solutions," she geopolitical and supply chain challenges globally, Marwah said the Indian auto parts industry clocked a 10% increase in revenues at $80.2 billion in FY25. The industry, in fact, grew at 14% compounded annually between FY20 and FY25, nearly doubling in size in five years. "FY25 was yet another milestone year where the industry's growth was underpinned by strong domestic demand, rising exports and increasing value addition," said Marwah, adding that as India transitions towards new-age mobility, the industry is making the necessary strides in investments, technology and localisation to serve both domestic and global markets exports rose by 8% to $22.9 billion last fiscal, imports went up at a slower 7.3% to $22.4 billion, resulting in a trade surplus of $453 million. The trade surplus improved from $300 million in Mehta, director general, ACMA said, "This increase in trade surplus indicates India's growing manufacturing competitiveness in the global market and localisation initiatives."
Mint
08-07-2025
- Automotive
- Mint
Auto component makers hope India-US trade deal to conclude soon
New Delhi, Jul 8 (PTI) Auto component makers are hopeful that India will soon seal a trade deal with the US, which is the single-largest market for Indian manufacturers, according to an industry official. The official also said that the government has been regularly consulting with the auto components industry amid the ongoing talks for an interim trade deal between India and the US. The comments have come against the background of the US suspending reciprocal tariffs until August 1. The earlier deadline was ending on July 9. India was not included in the list of countries that received tariff letters from the Trump administration on Monday. "... our name is not in the list of the 14 countries, and we are hopeful that, you know, they would be able to sort of come out with a deal," Automotive Component Manufacturers Association of India (ACMA) Director General Vinnie Mehta said. "I do not have any insights into what would be the contours of the deal. It may be a truncated one, but then there would be a second phase also. That's what I understand," he added. Mehta also said that the government has been regularly consulting with the auto parts industry on the proposed deal, while adding that "the people on the other side are not so easy". North America is the largest export market for the auto component industry and accounted for 32 per cent of the overall auto component exports in FY25. The market witnessed a growth of 8 per cent as compared with the last fiscal. Overall, auto component exports grew by 8 per cent to USD 22.9 billion ( ₹ 1,92,346 crore) last fiscal as compared with USD 21.2 billion ( ₹ 1,75,960 crore) in FY 2023-24.
