May 31, 2013: The Automotive Component Manufacturers Association (ACMA) of India (Eastern Region) is all set to pay a visit to the city of Gunsan in South Korea to spur investments into the Eastern part of India where development of the auto sector had been limited to Tata Motors in Jamshedpur till now. Due to the absence of major vehicle manufacturers in the region, the automotive component industry there too has seen limited growth. Hence, East India has not really developed as an auto hub on the lines of Pune, Chennai, Delhi-NCR or upcoming Gujarat.

The attempt now is to develop this region in tandem with the growth of the automotive sector in the country.

“ACMA wants to identify partner companies in South Korea to invest inward in Jamshedpur and in the Eastern region. It is open to all ACMA members who are looking at technical collaborations or expanding in the Eastern part of the country,” says Vinnie Mehta, executive director of ACMA.

It all began with a delegation from the city council of Gunsan, South Korea. Gunsan is a base for Tata Daewoo, a fully owned subsidiary of Tata Motors and South Korea’s largest truck maker. On a visit to India, the delegation had inked a sister-city agreement with the city of Jamshedpur in August 2004 for developing the twin cities on the same concept. Following it up and under its broad canopy, ACMA- Eastern Region, India and the Self- Governing and Administration Bureau of Gunsan City signed an Economic Cooperation Agreement in November 2012 to provide a platform and direction for economic cooperation for industries and enterprises located in their respective regions. A delegation from Gunsan had visited India in this regard.

Broadly, the agreement between the associations encompasses enterprise-level cooperation through their respective industrial bodies, exchange of information through seminars, workshops and other mutually agreed programmes as well as joint projects enabling technologies and their usage.

ACMA members are now reciprocating the visit from Gunsan by leading a delegation to the city in South Korea between June 16-21.

Gunsan's economy thrives on fishing, agriculture and heavy industry located west of the city in the reclaimed area known as the Industrial Zone. Importantly, GM Korea runs a factory here that assembles the Chevrolet Aveo for its worldwide requirements.

South Korea is also home to leading carmakers like Hyundai Motor Company and associated company Kia Motors besides SsangYong which has been acquired by Mahindra & Mahindra.

SHOBHA MATHUR