On The Prowl For Opportunities

The emphasis on promoting local manufacture of automobile and automotive components has led to the stakeholders actively scout for opportunities. Ashish Bhatia revisits the interventions and cites the inherent potential.

- Ashish Bhatia

The lion is on the prowl for some time now! Even as the pandemic continues to wreak havoc, the aspirations to align with the ‘Make in India’ vision plan for India and the rest of the globe have far from lost steam. If at all, they have only gathered a louder voice supporting this change instance from an erstwhile convenient dependence on imports to assemble in India. The industry realizes that the faster it turns self-reliant, the quicker it can encash on the opportunities that present themselves. The Automotive Mission Plan (AMP) 2016-26 seeks to outline the trajectory of the advancement of the Automobile component industry ecosystem in India. To give a perspective, the automotive component industry in India foresees a growth potential of USD 260-300 billion by the end of FY2026. The country by then could count itself to be amongst the top three automotive industries in the world.

In India, the industry is projected to contribute 12 per cent to the Gross Domestic Product (GDP). On the ground, it will play a catalyst in generating 65 million direct and indirect jobs. Notably, the overall turnover of the Indian auto component industry stood at USD 50 billion with a Compounded Annual Growth Rate (CAGR) of eight per cent according to Deepak Jain, President, Automotive Component Manufacturers Association (ACMA). In FY2020, the aftermarket stood at USD 10 billion with a CAGR of 12 per cent. The change in supply chain dynamics is said to be among the key drivers of this change in external relationships had with Indian manufacturers. Opine experts, it has played a catalyst in the industry turning more ‘Vocal For Local’.

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