New Delhi, March 4 (IANS). Global Original Equipment Manufacturers (OEMs) are re -evalting their supply chains and manufacturing strategies, making the country a better opportunity to establish itself as top global destinations in terms of investment and reach $ 100 billion in auto component exports.
Auto component exports reached $ 21.2 billion in FY 2023-24. Import was $ 2.5 billion higher than the country’s auto component exports in the financial year 2018-19. In the last financial year, export imports were $ 30 million more, showing a significant change.
According to the report released on Tuesday by the Automotive Component Manufacturers Association of India (ACMA) and Boston Consulting Group (BCG), with double the emphasis on classical components, India can potentially add $ 40-60 billion to increase in increasing exports.
The report states that India may expect to increase exports of components such as battery management systems, telematics unit, instrument clusters and ABS by taking advantage of emerging EV sector and electronic value chain through localization today.
ACMA President Shraddha Suri Marwah said, “We have not only achieved positive trade balance, but also the surplus is even more clear for the components used in vehicles; it is even more clear; it has reached about $ 50–150 million. We are committed to maintaining this development and we have an ambitious target of $ 100 billion in further exports.”
Global OEMs are India’s major customers in India’s Auto Component Industry, which is 20–30 percent of the exports.
BCG managing director and senior partner Vikram Jankirman said that encouraging two-three global OEMs to establish a manufacturing base in India can serve as the base column.
India emerges as a cost -effective option in the German market, providing auto components at 15 percent lower prices.
Currently, Mexico provides components at two to five percent lower prices due to low logistics and tariff costs in the US market dependent on imports from Maxico and China.
In contrast, Chinese components are mainly 20–25 percent more expensive than India due to additional tariffs.
Director General of ACMA, Vinnary Mehta said, “To fully benefit the opportunity, major Indian companies should aim to increase their exports 5–10 times and make a deep penetration in the global supply chain.”
-IANS
SKT/Ekde