Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles Shri Piyush Goyal said that the automobile industry is at an inflection point and is poised to grow rapidly. He was speaking at the 62nd Annual Meeting of the Automotive Component Manufacturers Association (ACMA) in New Delhi today. Touching upon the theme of today’s session, “Future of Mobility – Transforming to Stay Ahead of Opportunity”, Shri Goyal noted that the future of the automotive component industry lies in greater connectivity, focus on convenience, clean energy and clean mobility orientation and using state-of-the-art technology. Expressing confidence in the growth story of the industry, Shri Goyal emphasized that the focus should now be on quality and cost competitiveness.
He noted that while the auto industry has faced the challenges of subdued demand and slowdown mainly due to Covid in the past few years, the worst is now behind us and record two and three wheeler sales indicate that the industry is back on track.
Acknowledging the huge potential of the automobile sector, Shri Goyal said that the industry contributes significantly to GDP, generates employment, promotes skill development, rewards talent and has an ecosystem that has a significant impact on society. He reiterated the government’s commitment to support the industry through initiatives such as the Production Linked Incentives (PLI) scheme. The government is also focusing on supporting the semiconductor ecosystem, he added.
The minister noted that countries around the world are looking for trusted partners and resilient supply chains: “I don’t think there is a comparable opportunity of India’s size and magnitude anywhere else in the world”. The minister said negotiations on free trade agreements with several countries are progressing well. He hoped the Economic and Trade Agreement (ECTA) with Australia would be approved by their parliament by the end of this year.
Shri Goyal gave a 5 point action program to the industry:
• Focus on quality to become globally competitive and reduce dependence on imports.
• Think holistically and have a broader vision of how to deal with others in a spirit of openness and competitiveness.
• Emphasis on added value.
• Exit an uncompetitive market and explore new market opportunities in industries where we can be competitive.
• Think big and set aggressive goals and ambitions for the industry.
Shri Goyal asked the industry to organize itself so that the informal sector and smaller players can also benefit from the government’s support. Shri Goyal commended the industry for focusing on localization and promotion of local auto components and asked the auto industry to approach the government in case it faces any pressure or is forced to import from preferred suppliers instead of localization. Stating that the government would take serious note of this, he assured the government of full support in ensuring fair trade practices.
Concluding the speech, the minister urged the industry to expand India’s footprints internationally and make India a world leader in the automotive industry.
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