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.

Next Story
Infrastructure Transport

JNPA Becomes First Indian Port to Cross 10 Million TEU Capacity

The Jawaharlal Nehru Port Authority (JNPA), located at Uran in Navi Mumbai, has become the first port in India to achieve over 10 million TEUs (twenty-foot equivalent units) in container handling capacity.With the recent expansion, the port now operates five container terminals with a combined capacity of 10.4 million TEUs, alongside two liquid and two general cargo terminals.Handling more than half of India’s container traffic, JNPA processed 7.05 million TEUs in 2024 and has moved 15.39 million tonnes of containers and 16.64 million tonnes of total cargo in the first two months of FY 2025â..

Next Story
Infrastructure Transport

Nod for Rs. 36.26 billion Expansion of Pune Metro Line 2

The Union Cabinet has approved the Rs.36.26 billion expansion of Pune Metro Line 2, adding 12.75 km of track and 13 new stations to improve east–west connectivity across the city.The project aims to link Pune’s urban core with rapidly growing suburbs, supporting the city’s rising demand for efficient and sustainable transport solutions. This expansion is part of Corridor 2 of the Pune Metro and includes two key routes: Vanaz to Chandani Chowk (Corridor 2A) and Ramwadi to Wagholi/Vitthalwadi (Corridor 2B).It will connect residential, IT, and educational hubs in areas such as Bavdhan, Koth..

Next Story
Infrastructure Transport

Assembly begins for ‘Nayak’ TBM on Thane– Borivali Twin Tunnel Project

The assembly of ‘Nayak’, the first of four Tunnel Boring Machines (TBMs) for the Thane–Borivali Twin Tube Tunnel Project, has commenced at the Thane site. Built by German firm Herrenknecht AG and deployed by Megha Engineering & Infrastructure (MEIL), the TBM marks a key milestone in Mumbai’s ambitious 11.8-km underground road corridor beneath Sanjay Gandhi National Park.The twin tunnels will reduce the Thane–Borivali travel distance by 12 km and decongest Thane Ghodbunder Road. ‘Nayak’, with a 13.2-metre diameter, is designed to bore through challenging geological conditions ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?