Experts say that automakers and auto-parts manufacturers in India have to focus on localisation and production of parts in bulk rather than importing from countries such as China. Experts believe that by doing so, the country could witness a boost in exports and reduction in the cost of products.
It was also mentioned at the 60th annual convention of Automotive Component Manufacturers Association of India (Acma) that automakers should connect with companies which are trying to shift their facilities to other countries rather than trying to establish a unit in India.
The decision to turn focus from import of auto-components such as tyres came as a result of the conflict that arose in the India-China border which had led to the death of 20 Indian Soldiers. This is the primary reason for implementing import restrictions on certain components which includes tyres. The import restrictions has impacted the production of automobile manufacturers.
Kenichi Ayukawa, president, SIAM and managing director of Maruti Suzuki stated, "Many companies in China are relocating or putting plants in other countries to cover geo-political risk. We should bring those investments to India or tie-up with them to produce in India."
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He added, "I will make efforts to organize some business exploration meetings with manufacturers of Japan to increase ‘Make in India’. Similarly, we could do with other countries like Europe or Korea or USA,"
Automakers in India have planned to reduce their dependence on components such as tyres from China since they had to reduce 10 percent of monthly output. This reduction in monthly output occurred as a result of the Impact that COVID-19 pandemic had brought.
Amitabh Kant, Chief Executive Officer, Niti Aayog said, "A fourth of the total imports by the auto component industry are from China. I tried to analyse these components and the top ten components imported includes gear box and parts, tubes, radiators and axles, steering wheels among others."
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He added, "I personally don’t see any technological impediment for localisation of these components. These are all low-tech products and with sales of 2.5 crore vehicles every year India provides the necessary scale and support and these is no rationale for importing these."
India’s leading two-wheeler manufacturers, Hero MotoCorp Ltd, TVS Motor Company Ltd and Bajaj Auto Ltd. have already started discussions with suppliers to locally manufacture components in bulk which are currently imported from China.
Pawan Munjal, managing director and chief executive, Hero MotoCorp mentioned, "It is up to all of us to switch gears and race ahead and grab all opportunities when we are called upon as leaders to shape our own future. We are an integral part in achieving a self-reliant country by designing a new future.
"I believe going forward our sector can be the growth engine for bringing alive the Atmanirbhar Bharat. It is through this principle our industry has the opportunity to become a global hub in the very near future."
