Auto expo showcases India as manufacturing hub

India is currently the seventh largest producer in the world with an average annual production of 23.36 million vehicles, of which 3.57 million are exported Ahmad Shariq Khan and Jasleen Kaur | The Dollar Business
Auto expo showcases India as manufacturing hub Along with the main expo in Greater Noida, the Auto Components show was also held in New Delhi’s Pragati Maidan from February 4-7, showcasing cutting-edge technologies and tools from the sector.
  The Auto Expo 2016, which concluded on Tuesday, displayed India’s potential to become the hub of manufacturing and innovation in the automobile sector with makers from 20 countries sashaying an array of models on wheels, attracting huge number of buyers and prospective business partners. The biennial extravaganza, organized by the Automotive Component Manufacturers Association (ACMA), Confederation of Indian Industry (CII) and Society of Indian Automobile Manufacturers (SIAM) at the India Expo Mart, Greater Noida, saw brands from across the globe showcasing a variety of cars, bikes and latest trends from the auto world. India is currently the seventh largest producer in the world with an average annual production of 23.36 million vehicles, of which 3.57 million are exported. Global car majors have been, of late, ramping up investments in India to not just cater to the growing domestic demand but to leverage the country’s competitive advantage to set up export-oriented production hubs. Many big names present at the auto fair reaffirmed their commitment to Prime Minister Narendra Modi’s clarion call to ‘make in India’. Renault India Pvt. Ltd, a fully owned subsidiary of Renault S.A.S (France) that currently offers seven models in the Indian market, said it was keen to expand its production across the country. The French auto major’s existing manufacturing facility located in Oragadam (Chennai) has the capacity to produce 480,000 units per annum. Speaking to The Dollar Business, Sumit Sawhney, Country CEO and Managing Director, Renault India, said, “I thank Indian customers for their phenomenal response to Renault products. And the company is ramping up its production to enable faster deliveries to both its customers in India and beyond.” Sawhney has recently hinted at his company’s willingness to explore the idea of exporting the Renault Kwid to not just neighbouring markets such as Nepal and Sri Lanka but also to Latin American and African markets. Officials from Maruti Suzuki, which has managed to sustain its lead position in the Indian car market despite tough competition from Hyundai and Toyota, said that most of the global car makers have increased their localisation levels in manufacturing in the country. And given the country’s advantages in “incomparable engineering skills at an economical cost”, the country is bound to emerge as an export hub for the sector. The Japanese auto giant had already announced that it will export its India-made Baleno to the brand’s originating country, i.e. Japan from this year. Y K Koo, MD and CEO of Hyundai Motor India—the Korean auto major and India’s second-largest car-manufacturer that has been exporting to 85 countries from its Chennai manufacturing facility, has recently said that the company also had a number of “Make in India products, made for the world”. Koo feels that India has the right ingredient and the potential to become the global automotive manufacturing hub. Japanese car maker Honda also plans to make India an export hub for auto components by enhancing supply from here to its various global operations. Going by the latest company reports, it exported auto components worth Rs.722 crore from India in 2014-15. “We have been exporting a lot of components from India and in future we definitely envision India as a global export hub in this segment,” said a company representative at the fair. Keeping with its focus on exports, the company, which had recently re-launched its premium hatchback Jazz in India, had started exporting the model ahead of its launch in the country. The company also exports models like hatchback Brio, compact sedan Amaze, mid-size sedan City, and multi-purpose vehicle Mobilio. “While, of late, we were exporting mostly to South Africa and neighbouring countries Nepal and Bangladesh, now we are exploring other destinations to increase our export market. While Amaze, Jazz and City are manufactured at the Tapukara facility, other models like Brio and Mobilio are manufactured at our Greater Noida factory. All this shows that we are determined to be actively involved in Indian PM’s call to Make in India”, a company spokesperson added. Japanese player Nissan also sees India as a strategic market. And hence, the world’s sixth largest automaker hopes that its newly-launched manufacturing and R&D units across India will support it in becoming one of India’s biggest car exporters. The other players present at the expo that already have significant presence in India included names such as Piaggio (Italy), Volkswagen (Germany),  General Motors (USA),   BMW (Germany), Ford (USA) and  Toyota (Japan). Along with the main expo in Greater Noida, the Auto Components show was also held in New Delhi’s Pragati Maidan from February 4-7, showcasing cutting-edge technologies and tools from the sector. 

Feburary 10, 2015 | 4:39pm IST.   

The Dollar Business Bureau - Feb 10, 2016 11:06 IST
 
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