Automotive Industry is at the Inflection Point, Poised to Grow Significantly, says Commerce Minister

· Mr. Goyal Addresses 62nd Automotive Component Manufacturers Association (ACMA) Annual Session

· Future of Automotive Component Industry - Connected, Convenience, Clean Energy and clean Cutting-edge technology’

· Asks Auto-component industry to approach the government if they are being forced to import rather than localising

· Urges Industry to expand its footprints internationally and make India a world leader

Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles Piyush Goyal said the Automotive Industry is at the inflection point and is poised to grow fast. He was addressing the 62nd Automotive Component Manufacturers Association (ACMA) Annual Session in New Delhi on 14 Sept. 2022.

Touching upon the theme of today’s session, ‘Future of Mobility - Transforming to be Ahead of the Opportunity’, Mr. Goyal remarked that the future of Automotive Component Industry rests on being more Connected, focussing on Convenience, orienting towards Clean Energy and clean mobility and using Cutting-edge technology. Expressing confidence on the growth story of this Industry, Mr. Goyal emphasised that the focus should now be on Quality and Cost competitiveness.

He noted that while in the last few years Automobile Industry faced challenges of subdued demand and slowdown mainly due to Covid, the worst is over now and record number of sales for two and three wheelers suggests that the Industry is back on track.

Recognizing the huge potential of the Automotive sector, Mr. Goyal said the Industry contributes significantly to the GDP, creates jobs, encourages skill development, values talents and has an ecosystem which has a considerable impact on the society. He reiterated the commitment of the Government in supporting the Industry through initiatives such as Production Linked Incentive Scheme (PLI). The government is focussed on supporting the semiconductor ecosystem also, he added.

Noting that the countries across the world are looking for trusted partners and resilient supply chains, the Minister said, “I don't think there is a comparable opportunity of the size and scale of India anywhere else in the World”. The Minister mentioned that negotiations on FTAs with several countries are progressing well. He was hopeful that the Economic and Trade Agreement (ECTA) with Australia would be passed by their parliament by the end of this year.

Mr. Goyal gave 5 point action agenda to the Industry:

· Focus on Quality in order to become globally competitive and reduce dependence on import.

· Think holistically and have a larger vision to engage with others in the spirit of openness and competitiveness.

· Give emphasis on Value Addition.

· Exit Uncompetitive market and explore new market opportunities in the sectors where we can be competitive.

· Think big and set aggressive targets and ambitions for the industry.

Mr. Goyal asked the Industry to organise in a way so that the informal sector and smaller players also can benefit from support of the Government. Complimenting the Industry for focussing on localization and promoting local auto components, Mr. Goyal asked the Auto component industry to approach the government in case they face any pressure or are forced to import from preferred suppliers rather than localising. Stating that the government will take serious note of this, he assured full support of the government in ensuring fair trade practices.

Concluding the address, the Minister urged the Industry to expand India’s footprints internationally and make India a world leader in Auto Industry.