Indian auto component segment to remain docile for the rest of the fiscal, ACMA

The Indian auto parts manufacturing segment will remain more or less flat for the rest of the fiscal due to the prevailing slack market condition, according to the nodal agency, Auto Component Manufacturers Association (ACMA). Harish Lakshman, President of ACMA said that the growth of the auto parts industry would more or less remain flat this year.

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Industry scenario
The Indian auto parts industry in 2012-13 logged a sales growth of $ 40 billion in contrast with $ 41 billion in the year ago
period. As far as the exports is concerned, during the period under review, the sales growth stood at $ 10 billion at the same time imports was pegged at $ 13 billion. A whopping 80 percent of the exports was for the car makers across the globe. The official said that the current year was the most challenging period and he hastened to add that the long-term growth vision was not worrisome. While touching upon the industry relations between Indian and Japanese automotive sectors, Harish
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Lakshman added that the industry  needed to sit and work with the Japanese firms in order to build long-term relationship. Last year, the auto components import from Japan to India stood at $ 1.8 billion in comparison to the export of auto parts from India to Japan, which registered a growth of $ 200 million. ACMA is in fact looking forward that the Indian auto component industry would work closely with the Japanese supply chain, thus ensuring that these companies are cementing the relationship and eventually enhancing the business with that country.
Technology cluster programmes

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Aiming at helping the small and medium enterprises during the existing market slowdown, ACMA is organising technology cluster programmes with the intention of equipping them on managing the cost better. The maiden initiative was kick-started in Jamshedpur in the recent past. What is more, plans are afoot to commence the programme in other parts of the country including Chennai. As part of the programme, up to the tune of Rs 200,000 will be provided to the SMEs, which would be partly funded by the United Nations Industrial Development Organisation, according to Vinnie Mehta, Executive Director of ACMA. The official said that in Jamshedpur, eight small firms had joined the programme. We have set an ambitious target of providing training to 400 odd firms in the next three years, he said and added that ACMA would be offering training to those firms which has turnover of Rs 15 crore or less.

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