Latest news with #ShradhaSuriMarwah
Time of India
6 days ago
- Automotive
- Time of India
Shield for mass market, drive-in for luxe cars
India will slash duties on high-end cars from the United Kingdom under the free trade deal signed on Thursday, while protecting the mass-market segment where Indian manufacturers are gaining global ground. "Vehicles priced below £40,000 (about ₹46 lakh including cost, insurance and freight), where Indian automakers are highly active, have been explicitly excluded from any duty concession," an explanatory note released by the commerce ministry said. "The concessions are targeted largely at large engine capacity ICE vehicles- above 3000 cc petrol or 2500 cc diesel and high-end EVs priced above £80,000 (CIF)...providing a protective shield to the mass-market EV segment," it said. The deal is likely to benefit luxury car brands such as Aston Martin, Rolls-Royce, McLaren, Lotus, Jaguar Land Rover (JLR) and BMW Mini, which currently face steep import duties of about 110% in India. Under the Comprehensive Economic and Trade Agreement (CETA), India will gradually reduce customs duties to 10% for a specific quota of high-end vehicles over five years. For out-of-quota imports, the duty cut will be limited to 50% over 10 years. Notably, no duty concessions will be extended to EVs, hybrids, or hydrogen-powered vehicles during the first five years of the agreement. From the sixth year, the number of internal combustion engine (ICE) vehicles permitted under the concessional regime will decrease in proportion to the number of EVs imported, with the total import quota capped at 37,000 vehicles over 15 years. JLR, the Tata Motors-owned British marque, welcomed the deal even though many of its products being sold in India will not benefit. "India is an important growth market for our British-built luxury products," said a JLR India spokesperson. Around 60% of the cars JLR sells in India, including popular models in the Range Rover portfolio - Range Rover, Range Rover Sport, Velar and Evoque - are already locally produced through the CKD route. "Only a limited number of high-value SV models are currently exported from the UK to India and therefore in scope of the FTA," said the spokesperson. Defender, which is manufactured in Slovakia, too, falls outside its scope. Benefit from the trade deal will depend on brand-wise allocation under the duty concession quota, a spokesperson at a European carmaker said. Clarity on pricing will only emerge once the final legal text is released and approved, the person added. On the components side, Shradha Suri Marwah, president of the Automotive Component Manufacturers Association (ACMA), said the FTA is expected to boost exports, streamline regulatory processes, and foster collaboration in electric mobility, precision engineering, lightweight materials, and R&D.
Economic Times
6 days ago
- Automotive
- Economic Times
India-UK deal shields mass market segment, a boost for luxury cars
Synopsis India's new free trade agreement with the UK will slash duties on high-end cars, benefiting luxury brands like Aston Martin and Rolls-Royce. The deal protects the mass-market segment by excluding vehicles under £40,000 from duty concessions. Over five years, customs duties will gradually reduce to 10% for a specific quota of high-end vehicles, promoting collaboration in electric mobility and R&D. Agencies Representative Image Mumbai: India will slash duties on high-end cars from the United Kingdom under the free-trade deal signed on Thursday, while protecting the mass-market segment where Indian manufacturers are gaining global ground.'Vehicles priced below £40,000 (about Rs 46 lakh including cost, insurance and freight), where Indian automakers are highly active, have been explicitly excluded from any duty concession,' an explanatory note released by the commerce ministry said.'The concessions are targeted largely at large engine capacity ICE vehicles— above 3000 cc petrol or 2500 cc diesel and high-end EVs priced above £80,000 (CIF)...providing a protective shield to the mass-market EV segment,' it deal is likely to benefit luxury car brands such as Aston Martin, Rolls-Royce, McLaren, Lotus, Jaguar Land Rover (JLR) and BMW Mini, which currently face steep import duties of about 110% in the Comprehensive Economic and Trade Agreement (CETA), India will gradually reduce customs duties to 10% for a specific quota of high-end vehicles over five years. For out-of-quota imports, the duty cut will be limited to 50% over 10 years. Notably, no duty concessions will be extended to EVs, hybrids, or hydrogen-powered vehicles during the first five years of the the sixth year onward, the number of internal combustion engine (ICE) vehicles permitted under the concessional regime will decrease in proportion to the number of EVs imported, with the total import quota capped at 37,000 vehicles over 15 the Tata Motors-owned British marque, welcomed the deal even though many of its products being sold in India will not benefit.'India is an important growth market for our British-built luxury products,' said a JLR India 60% of the cars JLR sells in India, including popular models in the Range Rover portfolio – Range Rover, Range Rover Sport, Velar and Evoque – are already locally produced through the CKD route.'Only a limited number of high-value SV models are currently exported from the UK to India and therefore in scope of the FTA,' said the which is manufactured in Slovakia, too, falls outside its from the trade deal will depend on brand-wise allocation under the duty concession quota, a spokesperson at a European carmaker said. Clarity on pricing will only emerge once the final legal text is released and approved, the person the components side, Shradha Suri Marwah, president of the Automotive Component Manufacturers Association (ACMA), said the FTA is expected to boost exports, streamline regulatory processes, and foster collaboration in electric mobility, precision engineering, lightweight materials, and R&D.'MSMEs in the sector will benefit from improved access to UK markets and liberalised trade terms,' she said, calling the FTA a 'forward-looking agreement' for the auto ecosystem.
Time of India
6 days ago
- Automotive
- Time of India
India-UK deal shields mass market segment, a boost for luxury cars
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Mumbai: India will slash duties on high-end cars from the United Kingdom under the free trade deal signed on Thursday, while protecting the mass-market segment where Indian manufacturers are gaining global ground."Vehicles priced below £40,000 (about ₹46 lakh including cost, insurance and freight), where Indian automakers are highly active, have been explicitly excluded from any duty concession," an explanatory note released by the commerce ministry said."The concessions are targeted largely at large engine capacity ICE vehicles- above 3000 cc petrol or 2500 cc diesel and high-end EVs priced above £80,000 (CIF)...providing a protective shield to the mass-market EV segment," it deal is likely to benefit luxury car brands such as Aston Martin, Rolls-Royce, McLaren, Lotus, Jaguar Land Rover (JLR) and BMW Mini, which currently face steep import duties of about 110% in the Comprehensive Economic and Trade Agreement (CETA), India will gradually reduce customs duties to 10% for a specific quota of high-end vehicles over five years. For out-of-quota imports, the duty cut will be limited to 50% over 10 years. Notably, no duty concessions will be extended to EVs, hybrids, or hydrogen-powered vehicles during the first five years of the the sixth year, the number of internal combustion engine (ICE) vehicles permitted under the concessional regime will decrease in proportion to the number of EVs imported, with the total import quota capped at 37,000 vehicles over 15 the Tata Motors-owned British marque, welcomed the deal even though many of its products being sold in India will not benefit."India is an important growth market for our British-built luxury products," said a JLR India 60% of the cars JLR sells in India, including popular models in the Range Rover portfolio - Range Rover, Range Rover Sport, Velar and Evoque - are already locally produced through the CKD route."Only a limited number of high-value SV models are currently exported from the UK to India and therefore in scope of the FTA," said the which is manufactured in Slovakia, too, falls outside its from the trade deal will depend on brand-wise allocation under the duty concession quota, a spokesperson at a European carmaker said. Clarity on pricing will only emerge once the final legal text is released and approved, the person the components side, Shradha Suri Marwah, president of the Automotive Component Manufacturers Association (ACMA), said the FTA is expected to boost exports, streamline regulatory processes, and foster collaboration in electric mobility, precision engineering, lightweight materials, and R&D.
Time of India
08-07-2025
- Automotive
- Time of India
Auto component industry battles supply chaos, emerges resilient: ACMA FY25 report
We're living in turbulent times. A tragic Air India crash, the untimely passing of a transformative leader in the industry, and an increasingly volatile geopolitical backdrop have cast long shadows over sentiment. With global supply chains under strain, trade routes shifting, and rare earth magnet imports grinding to a halt, the Indian automotive component sector finds itself tested like never before. Yet, amid these shocks, India's auto component industry continues to demonstrate what it has long been known for—resilience, foresight, and adaptability. The latest data released by the Automotive Component Manufacturers Association of India (ACMA) in its Industry Performance Review for FY2024–25 confirms this narrative of strength under pressure. The industry recorded a turnover of ₹6.73 lakh crore, or $80.2 billion, marking a 9.6 per cent increase over the previous fiscal. Over a five-year horizon, it has nearly doubled in size, registering a compound annual growth rate of 14 per cent from FY2020 to FY2025. 'The Indian auto component industry continues to exhibit remarkable resilience and growth,' said Vinnie Mehta , Director General, ACMA . 'OEM sales, exports and the aftermarket all grew positively. Notably, we achieved a trade surplus of $453 million—this reflects our improved competitiveness and stronger localisation efforts.' Domestic strength, global relevance According to Shradha Suri Marwah , President of ACMA and Chairperson and Managing Director of Subros, the sector's stability and progress stem from multiple forces working in tandem. Robust domestic demand, improving export performance, and focused investment in localisation and value-added manufacturing have ensured continued forward momentum. She highlighted how FY2024–25 marked yet another milestone for the industry, underpinned by broad-based demand recovery and a stronger technological push. Although the two-wheeler segment led in terms of growth, passenger vehicle and commercial vehicle segments maintained steady, if moderate, progress. Global uncertainty, especially in Europe and certain Asian markets, did temper export performance, but the outlook remains cautiously optimistic. 'FY25 was another milestone year where our growth was driven by both domestic strength and global relevance,' said Shradha Suri Marwah. 'Even as we faced global headwinds, the component industry remained robust. The transformation towards new-age mobility is underway, and our sector is responding with agility.' Exports rose by eight per cent to $22.9 billion, led by strong demand in North America and Asia. North America accounted for 32 per cent of exports, while Asia's share stood at 26 per cent. Europe saw a slight decline, with volumes dipping by 2.1 per cent. Meanwhile, the domestic OEM market absorbed components worth ₹5.70 lakh crore, reflecting a 10 per cent rise on the back of increased vehicle production and rising demand for higher value components. Imports also rose, reaching $22.4 billion, with Asian economies making up two-thirds of the total inflow. However, the more notable development was the industry's net trade surplus—$453 million—marking a significant improvement over the $300 million recorded in the previous fiscal. The aftermarket sector, too, continued its steady expansion, reaching ₹99,948 crore, supported by rural demand, a growing used vehicle base, and a more formalised service ecosystem. 'The Indian auto component sector continues to be a cornerstone of the country's manufacturing prowess,' said Shradha. 'Even with disruptions, our investments in product development, localisation and technology upgrades are ensuring we serve both domestic and global markets effectively.' Pressure points in the supply chain Supply chain disruption remains a central concern. The re-routing of international shipping corridors has extended lead times significantly. What once took 10 days can now take more than 20, which has a direct impact on working capital cycles and inventory planning. Larger components are more affected, while smaller ones are selectively air-freighted—though at a cost. The challenges are compounded by the growing technological complexity of modern vehicles. The average car today integrates up to 18 speakers, advanced air-conditioning systems, GPS navigation, automatic transmissions, and electrically operated seats. These innovations rely on small motors, control units, and a variety of sensors—many of which are import-dependent and affected by supply chain fragility. 'Your car is slowly becoming a mini-robot. It talks to your phone, responds to your voice, and manages comfort electronically,' said Shradha. 'Every feature added translates into more complex component needs—and our industry is responding, as it always has.' A major point of concern has been the sudden freeze in rare earth magnet imports, which has quietly disrupted motor manufacturing since April. These magnets may be low-cost, but they are essential in applications critical to EVs, infotainment systems, and electric seat operation. Industry insiders acknowledge that inventories are depleting and that the crisis could deepen if not addressed through alternative sourcing or domestic processing. ACMA has been actively engaging with various government departments, including the Ministry of Heavy Industry, to ease the burden on manufacturers—particularly in relation to the domestic value addition (DVA) criteria under the PLI scheme . The ministry has indicated that it is open to listening to industry representation, although final decisions are awaited. 'It's a low-cost item, but a vital one. We are agile and already working on solutions,' said Shradha. 'India has the raw material; we just need the process technology. We're hopeful that the situation will not be as dire as feared.' Investing for a smarter tomorrow Even amidst these pressures, investment has remained consistent across the sector. While specific numbers are hard to pinpoint, companies are ramping up spending in product technology, automation, infrastructure, and people. Notably, the auto component industry typically invests 18 to 24 months ahead of demand showing evidence of its long-term confidence in India's passenger vehicle growth trajectory. Perhaps the most significant shift is the increased focus on workforce development. Skilling, reskilling, and upskilling have become core to company strategy, not just among Tier 1 players but across the entire value chain. The Automotive Tyre Manufacturers' Association (ATMA) has taken a lead role in enabling these transitions, especially for MSMEs who are more vulnerable to sudden market shifts. 'Reskilling is no longer optional, it's hygiene,' said Shradha. 'The pace of technology change is intense, and everyone in the value chain is now investing in people, not just machines.' When asked about support measures for smaller players, Shradha emphasised that MSMEs benefit from broader, long-term government schemes that span across sectors. There has been no crisis-specific intervention in response to China-related disruptions or U.S. tariff issues. The auto component industry, by its very nature, is considered resilient and self-sustaining, even during downturns. A cautious optimism also prevails when it comes to international trade outlook. While India was not among the 14 nations listed under recent tariff actions by the US, the full implications remain unclear. Industry leaders expect phased negotiations and a prolonged resolution timeline, making export forecasting a challenge for now. 'It wouldn't be right to speculate on exports just yet,' said Vinnie Mehta. 'We have significant exposure to the US market and need more time to assess how the situation develops.' Eyes on the future As the industry looks ahead, ACMA is preparing to release a dedicated report on 'Vulnerability in Supply Chains' on September 12, 2025. The report is expected to outline potential risks, structural gaps, and strategic imperatives to future-proof India's supply lines—especially in an era of EV transition and global de-risking. Despite all odds, India's automotive backbone continues to hold. It may bend under pressure, but it does not break. With growth, localisation, and a renewed focus on people and technology, the industry is proving that it is not only surviving turbulence—it is transforming through it.
Time of India
08-07-2025
- Automotive
- Time of India
Auto component industry seeks national strategy on critical materials amid rare magnet shortage
Facing potential production losses due to a shortage of rare earth magnets , the auto component industry body ACMA on Tuesday sought a national strategy on critical materials to secure electric vehicle production in the country. Terming the rare earth shortages as a major concern, Automotive Component Manufacturers Association of India (ACMA) President Shradha Suri Marwah said that the industry is agile and has started to work on alternative solutions. "The limited availability of rare earth magnets remains a concern, underscoring the need for a national strategy on critical materials to secure the future of EV and mobility manufacturing in India," she stated. Despite various geopolitical issues and supply chain challenges, the auto components industry reported a turnover of USD 80.2 billion for FY2025, a growth of around 10 per cent as compared with FY2024, Marwah stated. The industry grew at a CAGR of 14 per cent from FY20 to FY25, nearly doubling in size over a period of past 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," Marwah said. 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 effectively, she added.
