The Automotive Component Manufacturers Association of India (ACMA) stands as the paramount organization championing the interests of the Indian Auto Component Industry. With a robust membership exceeding 850 manufacturers, ACMA encapsulates more than 90% of the industry’s turnover within the organized sector.
In a freshly held interview, Aishwarya conversed with Vinnie Mehta, Director General of ACMA, regarding the association’s directives and the skilling movement in the EV industry for this year.
What are your expectations from this EV Expo Summit 2024?
In the competitive industry, almost 30% of our production is exported. Last year, we exported $20 billion worth of auto components out of India. And we are hoping for a similar success story in the EV components as well.
India’s stance in the global export arena is formidable, drawing lessons from its conventional auto component success. Last year, a significant portion of our exports found their way to demanding markets like the USA and Europe, showcasing our competitive edge. This achievement underscores India’s capacity to meet the high standards of developed economies, despite the fierce competition, especially from China and other developing countries.
How do you think India stands right now in the export business, and can there be competition to the international OEMs?
Yes, of course. The auto component industry in India is globally competitive. We exported $20 billion last year, with 30% going to the USA and another 30% to Europe. Despite intense competition, particularly from China and other developing countries, our focus on supplying to the developed world has kept us competitive. It underscores the need for continuous investment in R&D, skill development, digitization, and maintaining global quality standards.
The key to maintaining, if not surpassing, our position lies in relentless investment in Research and Development (R&D), skill development, digitization, and a commitment to quality. The principles of Kaizen, or continuous improvement, which have been instrumental in our conventional export triumphs, are now being applied to the EV domain. Government initiatives such as the Production Linked Incentive (PLI) and Faster Adoption and Manufacture of Electric Vehicles (FAME) have provided substantial support.
EV skill training has become a crucial part of promoting EV adoption in India. How do you view this, and how is ACMA promoting it?
We recognize the skill shortage in the industry. ACMA, along with SIAM and FADA, has established the Automotive Skill Development Council to address this. We’re offering courses on EVs and electronics, aligned with national standards. Our Center of Excellence at SRM University focuses on digitalization, office automation, and advanced design skills. Investing in skilling is essential to stay competitive.
How do you think the entry of international competition in the Indian market will impact India’s EV industry?
At ACMA, we welcome all investments in the automotive space. We support OEMs focusing on localization, as it benefits our members and the industry at large.
Any particular targets you have set for this year?
With supportive government policies, we expect another great year. After achieving a turnover of $70 billion in FY23, we anticipate a growth rate of around 10% for FY24, with a continued focus on technology in the auto component space.
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