The auto industry has reached a tipping point and is set for explosive expansion.
Connected, convenient, environmentally friendly, and cutting-edge technologies will be the cornerstones of the automotive component industry's bright future.
According to Shri Piyush Goyal, the Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles, the Automotive Industry is at an inflection moment and is primed for rapid growth. Earlier today in New Delhi, he delivered a speech at the 62nd Annual Session of the Automotive Component Manufacturers Association (ACMA).
Shri Goyal made a remark that touched on the topic of today's session, which was titled "Future of Mobility - Transforming to be Ahead of the Opportunity." He said that the future of the Automotive Component Industry depends on being more connected, concentrating on convenience, orienting towards clean energy and clean mobility, and utilising cutting-edge technology. Shri Goyal, while expressing confidence in the growth prospects of this industry, emphasised that the industry's current attention should be directed toward quality and cost competitiveness.
He made the observation that despite the fact that the automobile industry had experienced difficulties in the form of reduced demand and a slowdown in recent years, primarily as a result of Covid, the worst of it is over now, and the fact that record numbers of sales were achieved for two and three wheelers suggests that the industry is getting back on track.
Shri Goyal, in recognising the enormous potential of the automotive sector, stated that the industry makes a sizeable contribution to the GDP, generates employment opportunities, promotes the development of relevant skills, places a high value on talent, and possesses an ecosystem that has a significant influence on society. He reaffirmed the government's dedication to provide assistance to the industry through programmes such as the Production Linked Incentive Scheme (PLI). He went on to say that the government is also working to help the ecosystem of the semiconductor industry.
The Minister stated, in response to the fact that nations all over the world are searching for reliable partners and stable supply chains, "I don't think there is a comparable potential of the size and magnitude of India anyplace else in the World." The Minister stated that discussions for FTAs with a number of countries are moving along nicely and making good progress. He expressed his optimism that the Economic and Trade Agreement (ECTA) with Australia would be approved by the Australian parliament before the year came to a close.
Shri Goyal presented the Industry with a 5-point action agenda, which included the following:
- Put your attention on quality in order to become competitive on a global scale and lessen your reliance on imports.
- Think about things from a holistic perspective and have a bigger picture in order to interact with other people in an open and competitive spirit.
- Place your focus on the addition of value.
- Get out of the market where we can't compete and look into other market prospects in areas where we can compete.
- Think on a grand scale and establish challenging goals and aspirations for the sector.
Shri Goyal requested that the Industry organise itself in such a way that the informal sector and smaller companies are also able to benefit from the support that the government provides. Shri Goyal, while praising the industry for its focus on localization and promotion of local auto components, asked the auto component industry to approach the government in the event that they face any pressure or are forced to import from preferred suppliers rather than localising in the event that they face any pressure or are forced to import from preferred suppliers rather than localising. He offered full support of the government in ensuring that fair trade practises are implemented, stating that the government will take this matter seriously and taking notice of it.
At the end of his talk, the Minister pleaded with the Industry to make India a global leader in the Automotive Industry and to increase India's footprints in other countries around the world.