ACMA or the Automotive Component Manufacturers Association of India has inked an MoU with the Nigerian Automotive Association in Delhi that aims to enhance information exchanges between both the countries, invite African delegations to India and make it easier to assess opportunities on both sides.
The MoU was signed at the first ever buyer-seller meet with seven African countries and has been supported by the ministry of commerce and industry. About 38 key buyers from sub-Saharan countries – Kenya, Nigeria, Tanzania, South Africa, Egypt and Botswana – were part of the visiting delegation.
Members of the delegation comprised dealers and distributors as well as OEMs, component makers, importers and agents. Over 70 Indian component manufacturers exhibited their aftermarket products.
Ramesh Suri, president of ACMA, said, “According to a recent IMF report, it is estimated that the sub-Saharan African economy will grow by close to six percent in 2014 which makes it a lucrative opportunity for Indian component manufacturers. At present, Indian exports of auto components stand at $ 714 million (Rs 4,368 crore). The Indian auto component industry has been making continuous efforts to engage with the African automotive industry and this event is an endeavour to create new partnerships,”
Current imports from Africa to India are about $114 million (Rs 697 crore). “Africa is becoming a very good market for the Indian suppliers as their products are high on quality, cost and reliability and they see an opportunity in the emerging markets of Africa,” added Suri. Moreover, Africa’s vehicle population is increasing and this is an opportunity for Indian auto part companies.
“Overall India-Africa trade has witnessed a surge in recent years from a modest $24.98 billion in 2006-07 to $53.33 billion in 2010-11. Furthermore, bilateral trade between India and Africa is expected to reach $70 billion by 2015. The automotive sector in Africa could grow faster but it lacks access to the latest products and technologies to fully exploit its potential,” said Vinnie Mehta, director general of ACMA.
Some of the key Indian markets that Indian OEMs export to include South Africa, Kenya, Nigeria and Algeria.