The Automotive Component Manufacturers Association of India (ACMA), the apex body representing the Indian auto component industry, is organising a two-day buyers-sellers meet on June 7 and 8 at the Marriot Hotel in Zamalek, Cairo, Egypt. The event is supported by the Ministry of Commerce & Industry, the government of India, the Indian Embassy Cairo, the Egyptian Auto Feeders Association (EAFA) and the Egyptian Junior Business Association (EJB).
This is ACMA’s first ever initiative in Egypt which endeavours to explore aftermarket business opportunities and develop strong business linkages between the auto component industries of the two countries.
At the event, over 40 leading Indian auto component manufacturers (including Delux Bearings, Emdet Jamshedpur, Endurance Technologies, Indication Instruments, Jamna Auto, Shriram Pistons & Rings, Stork Rubber Products, Talbros Automotive Components, Valeo Friction Materials India and Minda Industries) will showcase their aftermarket products to Egyptian spare part dealers, distributors, importers and OEMs of cars, trucks, and motorcycles. Key aftermarket product on display will includebody and structure parts, engine and exhaust, suspension and braking, transmission and steering, electrical and electronics and rubber products.
Egypt, which opens a gateway of opportunities in the North-East African market, was the third largest vehicle producer in Africa, after South Africa and Morocco in 2013 and total vehicle sales rose 56 percent year-on-year in June last year. Moreover, the Egyptian automobile industry imports 60 percent of its component requirements, an estimated worth US# 900 million (Rs 5,685 crore) worth of auto parts were imported in 2013 of which India’s share of US$ 70 million (Rs 442 crore) accounted for eight percent of the total imports. The Egyptian automotive market is expected to grow another 50 percent by 2020.
“India is growing steadily in capability with globally competitive products that are well positioned to serve the needs of markets such as North Africa. What we make in India, we also make for the world. We see a sizeable presence of Indian OEMs here which gives us the confidence to service these markets,” said Ramesh Suri, president, ACMA.
The Indian auto component industry’s turnover for 2014-15 is expected to grow in the range of 8-10 percent, from US$ 35 billion (Rs 221,095 crore) in 2013-14. The industry is expected to pick up in second half of FY16 and beyond into FY17. On the export front, shipments are expected to grow by over 10 percent compared to 5.4 percent in FY14. Exports stood at US$ 10.2 billion (Rs 63,296 crore) in 2013-14.
“The Buyers-Sellers meet in Cairo offers immense opportunities to the Indian auto component manufacturers to cater to the growing Egyptian aftermarket industry. We are optimistic and look forward to a longstanding engagement in this market which will not only give access to the Egyptian auto industry to superior price competitive components matching global standards, but will also help them to engage with Indian manufacturers to forge long-term business linkages,” said Vinnie Mehta, director general, ACMA.