The Automotive Part Producers Affiliation of India (ACMA) on Thursday referred to as for a long-term steady and impartial expertise roadmap to allow expertise localization, saying it’s important for the survival and competitiveness of the trade in a context of declining car gross sales.
Talking on the 61st annual session of the physique of element producers, ACMA Chairman Deepak Jain identified that components corresponding to excessive nationwide taxes, rising gasoline prices, excessive Rising commodity costs have a detrimental influence on the affordability of automobiles and, in flip, on the viability of the parts sector.
“As we enter a brand new yr, we have to replicate on a number of the intrinsic challenges we now have confronted for nearly a decade,” he mentioned.
Recalling the “grave concern” expressed by the chairman of Maruti Suzuki India, RC Bhargava, on the Society of Indian Vehicle Producers (SIAM) annual conference on Wednesday concerning “the declining development price of car consumption within the nation, ”Jain mentioned it was time to replicate on the strategic interventions wanted to revive development.
“Excessive nationwide taxes, rising gasoline prices, sharp rise in uncooked materials costs, amongst others, have a detrimental influence on the affordability of automobiles and, due to this fact, on the viability of the parts sector,” did he declare.
Jain added that “a long-term steady and technologically agnostic roadmap that leaves enough time for expertise localization could be important to the survival and competitiveness of our trade.”
He mentioned that in fiscal 2021, the trade skilled the second consecutive yr of contraction in car gross sales in India, with total car gross sales falling 13.6%.
“Towards this backdrop, the parts trade additionally skilled a 3% decline, with its turnover dropping from $ 49 billion to $ 46 billion,” he mentioned.
Given the volatility of the atmosphere, Jain mentioned it was as much as the trade to search out solutions on how one can “try for survival, come collectively to revive and discover development alternatives.”
“If volatility is the brand new regular then how can we maintain ourselves, guarantee enterprise continuity and stay related to our purchasers with the uncertainty of the enterprise and regulatory atmosphere…” he mentioned.
Mixed with quickly altering developments and mobility, Jain added, “What could be probably the most appropriate enterprise mannequin for us? Will one measurement match all? What strategic interventions do we have to carry out inner and exterior, technological and human interventions as people and as people. a group to turn out to be globally aggressive. “
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Posted on: Thursday Aug 26, 2021 11:14 am IST