India showcases prowess at Automechanika 2006

There is a strong Indian contingent at the Automechanika 2006, which got underway in Frankfurt, Germany on September 12. The week long trade is playing host to over 160 Indian exhibitors. The India Pavilion is spread over three halls and the exhibitor list features some of the biggest names in the Indian automotive firmament including Fenner, Fiem, Pricol, Rane, Elofic, Sundram Brake Lining, Hindustan Composite, Kirloskar Oil Engines, Manatec, Mansons, Neolite, India Pistons, Sigma, Shriram Pistons & Rings, Lucas TVS, Automotive Valves and Talbros among others.

This year’s event is marked by the presence of a large number of SMEs – many of them participating for the first time at Automechanika. The mood among these companies – many of which hail from Punjab, Haryana and Gujarat – was one of upbeat optimism. The overbearing presence of China, which was represented by nearly 400 companies, did not seem to dampen their spirits and they were confident of more than holding their own against the Big Dragon.

Many of these companies believed that global business was important to increasing their market shares, especially in the aftermarket business. The India flavour, they said was just beginning to take off and what had happened so far was just the tip of the iceberg. The sense of buoyancy had to be seen to be believed.

Old hands concur, saying that the India brand has come to be established. They believed that there was a “staggering amount of confidence” in India’s ability to deliver quality. Although China still loomed over India, many firmly stated that their quality was way ahead of anything that China could offer. “India may not have China’s low-cost advantage, but our quality is on another plane altogether,” said one exhibitor.

Interestingly, about half a dozen Pakistani companies are there in Frankfurt and all of them are keen to do business with India. “There are real opportunities for teaming up with Indian companies and learn from their expertise,” said an exhibitor.

The crowds were just beginning to build up at the end of two days, but companies were bullish about bagging some big orders. Exhibitors also believed that it is important to participate in such trade fairs because it gave them an opportunity to meet with existing and prospective customers under one roof.

India's automotive industry is clearly going places. Cost competitiveness, value engineering and timely deliveries are factors favouring Indian component makers. The fact that India has an independent legal system with a basic respect for intellectual property rights makes it a viable sourcing hub.

The growth in the Indian components industry is also buoyant, and this is reflected in the fact that domestic carmakers are all making phenomenal investments to expand capacities. Over the next four to five years, investments from carmakers is estimated to touch Rs 300 billion. This will result in a huge windfall for the components industry which is inthe process of upgrading itself to meet this challenge.

In addition to expansion at home, component makers view exports as major growth engines, and this is where an event like the Automechanika come in handy in exposing them to potential customers. From the customers' point of view, they get to compare and contrast the engineering and manufacturing strengths of India and China under one roof. It is increasingly becoming apparent that India's advantage in providing value engineering is beginning to make a mark.

There is competition from other places to contend with. Thailand has been asserting itself as the Detroit of Asia. Other ASEAN countries also pose a challenge. But if what we saw in Frankfurt was any indication, Indian component makers can truly claim to have arrived on the world stage