Auto industry targets 28 components boosting make in India
ECONOMY & POLICY

Auto industry targets 28 components boosting make in India

India's automobile sector has identified 28 key components for indigenisation that are critical to maintaining the growth rate. As a result, high-end electrical and electronic components are among the components that original equipment manufacturers (OEMs) have asked their component suppliers to produce locally. Rajesh Menon, the director general of the Society of Indian Automobile Manufacturers (SIAM), stated that it was estimated that the forex savings resulting from the ongoing localization efforts had already saved over 7,000 crore. He emphasised that the availability of locally sourced components would decrease Original Equipment Manufacturers' (OEMs) reliance on imports, aligning with the auto industry's commitment to 'Atma Nirbharta,' and would also enhance the export potential of the component industry. Automatic gearboxes, power control units, different sensors, actuators, small motors, integrated charging systems, and 6- and 10-layer printed circuit boards (PCBs) are the identified components. Automatic gearboxes, power control units, different sensors, actuators, small motors, integrated charging systems, and 6- and 10-layer printed circuit boards (PCBs) are the identified components.

A localization roadmap was agreed upon by all SIAM OEMs and members of the Automotive Component Manufacturers Association (ACMA) in 2021, under the auspices of the SIAM Atmanirbhar Sourcing Group. It was decided that the OEMs will lower their import content by 3-5% by 2022 and by 16?20% by 2025 as part of this comprehensive strategy. This would result in a five-year decrease in imports of Rs 200 billion to Rs 250 billion. Menon emphasised that the PLI schemes for the automotive sector served as catalysts for the localization of advanced auto components and mentioned that these schemes were already providing the necessary ecosystem for companies to invest in and manufacture in India. He referenced an assessment study conducted in 2023 to gauge the progress made on the committed roadmap and also highlighted the ongoing work on 16 components, which resulted from joint ventures formed by component manufacturers to produce them in the country. According to the study, the industry achieved a reduction of imports by about 5.8% in two years, surpassing the target of 3-5% set for itself for that timeline. The process of localising components includes parts of the sunroof, air bags, seatbelts, power steering motor control units, electronic stability control units, two-wheeler electric vehicle motors, urea tank systems, and aluminium alloy wheels, all of which are being manufactured locally.

India now boasts the third-largest automobile industry in the world, with sales of passenger cars expected to surpass 4 million units by 2023. Currently, the industry contributes almost 40% of the manufacturing GDP and generates about $180 billion in revenue.

India's automobile sector has identified 28 key components for indigenisation that are critical to maintaining the growth rate. As a result, high-end electrical and electronic components are among the components that original equipment manufacturers (OEMs) have asked their component suppliers to produce locally. Rajesh Menon, the director general of the Society of Indian Automobile Manufacturers (SIAM), stated that it was estimated that the forex savings resulting from the ongoing localization efforts had already saved over 7,000 crore. He emphasised that the availability of locally sourced components would decrease Original Equipment Manufacturers' (OEMs) reliance on imports, aligning with the auto industry's commitment to 'Atma Nirbharta,' and would also enhance the export potential of the component industry. Automatic gearboxes, power control units, different sensors, actuators, small motors, integrated charging systems, and 6- and 10-layer printed circuit boards (PCBs) are the identified components. Automatic gearboxes, power control units, different sensors, actuators, small motors, integrated charging systems, and 6- and 10-layer printed circuit boards (PCBs) are the identified components. A localization roadmap was agreed upon by all SIAM OEMs and members of the Automotive Component Manufacturers Association (ACMA) in 2021, under the auspices of the SIAM Atmanirbhar Sourcing Group. It was decided that the OEMs will lower their import content by 3-5% by 2022 and by 16?20% by 2025 as part of this comprehensive strategy. This would result in a five-year decrease in imports of Rs 200 billion to Rs 250 billion. Menon emphasised that the PLI schemes for the automotive sector served as catalysts for the localization of advanced auto components and mentioned that these schemes were already providing the necessary ecosystem for companies to invest in and manufacture in India. He referenced an assessment study conducted in 2023 to gauge the progress made on the committed roadmap and also highlighted the ongoing work on 16 components, which resulted from joint ventures formed by component manufacturers to produce them in the country. According to the study, the industry achieved a reduction of imports by about 5.8% in two years, surpassing the target of 3-5% set for itself for that timeline. The process of localising components includes parts of the sunroof, air bags, seatbelts, power steering motor control units, electronic stability control units, two-wheeler electric vehicle motors, urea tank systems, and aluminium alloy wheels, all of which are being manufactured locally. India now boasts the third-largest automobile industry in the world, with sales of passenger cars expected to surpass 4 million units by 2023. Currently, the industry contributes almost 40% of the manufacturing GDP and generates about $180 billion in revenue.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Sabarmati Riverfront Two Plots Up for Auction at Rs2.24 bn Base Price

Two commercial plots on the western bank of the Sabarmati Riverfront will be auctioned with a base price of Rs 112 crore each, equivalent to Rs 1.12 bn apiece and Rs 2.24 billion in total. The parcels are located adjacent to the Metro Rail Bridge in Ahmedabad and form the first commercial offering after a prolonged pause. The Riverfront Development Corporation has framed the sale as part of a phased commercial release to revive development along the riverfront. The combined base valuation has been set by the corporation to reflect market rates along the riverfront. The corporation has fixed a ..

Next Story
Infrastructure Urban

Andhra Pradesh to Connect Over One Million Streetlights

Andhra Pradesh will undertake a statewide smart streetlighting programme across all 123 Urban Local Bodies (ULBs), bringing around 1.05 million (mn) streetlights under an AI enabled monitoring and management system. The programme will be implemented by Energy Efficiency Services Limited (EESL) with the Commissioner and Director of Municipal Administration under the state Municipal Administration and Urban Development Department. The project aims to convert conventional streetlighting into a digitally managed municipal service monitored and maintained remotely. The initial phase will cover abou..

Next Story
Infrastructure Urban

AMC To Procure Four Machines For Guard Rail Cleaning

Ahmedabad Municipal Corporation will introduce four specialised machines for cleaning guard railings along major roads and the central verges of BRTS and Metro corridors. The civic body plans to replace manual labour with mechanised cleaning to improve maintenance of road infrastructure and greenery. The purchase is estimated at Rs 82.8 million (mn), excluding GST. The proposal sets the base price of each machine at about Rs 20.7 million (mn) so four units total Rs 82.8 million (mn) before GST. 18 per cent GST will be applicable separately. During the warranty period each machine will operate ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement