EVs a major growth opportunity for Indian auto: ACMA

The Automotive Component Manufacturers Association (ACMA), India’s apex body of the Indian auto component industry hosted the 62^nd edition of its Annual Session themed ‘Future of Mobility - Transforming to be Ahead of the Opportunity’, on Wednesday.

The event was attended by over 2,000 delegates from OEMs, Government Officials, Component Manufacturers and other stakeholders. The key attendees were Nitin Gadkari, the Minister for Road Transport & Highways, Piyush Goyal Union Minister for Textiles, Commerce & Industry and Consumer Affairs, Food & Public Distribution  and Amitabh Kant, Hon’ble Sherpa G-20.  

Other notable industry leaders included Kenichi Ayukawa President, SIAM and former MD & CEO, Maruti Suzuki India and Pawan K. Goenka, Chairman SCALE committee and Chairman INSPACE, Department of Space. Goenka has been a past president of SIAM and is the former MD of Mahindra & Mahindra.

A joint research report by ACMA and McKinsey & Co., was also released during the event, themed on ‘Future of Mobility - Transforming to be Ahead of the Opportunity’. The study provides a glimpse into the push for clean mobility and corresponding growth in the adoption of electric vehicles (EVs). The report also highlights that India is likely to witness increased penetration of two-and three passenger vehicles and heavy commercial vehicles.  

Amitabh Kant, said, “ With the emergence of green mobility solution, there is lot more opportunity for the industry to collaborate, innovate, and grow. I believe India’s electrification transformation will be led by two-and three wheelers, and the industry needs to focus on 100 percent electrification for these categories of vehicles. The automotive industry needs to take a lead amidst the disruption happening globally in the green mobility space. I strongly believe with introduction of schemes like PLI for automotive sector, we would soon be manufacturing battery cells and packs at affordable cost in India.”

Union minister Piyush Goyal said, “Companies and investors across sectors are looking towards the great India opportunity. Despite several challenges during the pandemic, the automotive industry has shown remarkable resilience and has bounced back to pre-pandemic level of growth.

Nitin Gadkari, said, “ It gives me immense pleasure to know that component industry is a big contributor to manufacturing output for the nation.  It holds massive potential for employment generation and a hub for providing mobility solutions to the world.”

Gadkari emphasised on research and innovation, urging industry leaders to invest more in new technology, collaborate with startups and adopt successful practices. He also stressed the importance of EVs and flex-fuel vehicles.

Sunjay Kapur, President, ACMA said, “I am happy to report that the industry has registered a strong recovery in FY2022, despite several challenges. The industry is at an inflection point and portends an opportunity of massive growth. The world is fast moving towards sustainable development driven by the need to reduce carbon footprint and also to meet the challenges of the environment and climate change. As a responsible industry, the auto and the auto component industry and all other stakeholders across the automotive value chain will need to shoulder their responsibility well by transitioning to zero-emission products and business models that are sustainable, aligned to circular economy, and have minimal adverse impact on the environment.”