Automotive Components: India to Emerge Global Market Supplier – Envoy

The High Commissioner-Designate of India, B.N. Reddy has maintained that India will emerge as the global market supplier of automotive parts and components. He further made a declaration that the government of India remains committed to the objective as part of a vision to make India a leading destination for designing and manufacturing of automobiles and auto components. Speaking at India Aftermarket Auto Show by Automotive Component Manufacturers Association of India (ACMA), in association with the Ministry of Commerce and Industry at EKO Hotels and suites, Victoria Island, Lagos, Reddy added, “I may venture to say that it is the strength of Indian auto component industry that made India an easy destination for global automotive companies to establish their bases in India starting with the liberalisation phase of the Indian automotive sector in the early 1990s and thereafter. “I am profoundly impressed with the Indian auto component industry for its yeoman contribution to the overall automotive industry in India. “I call it a multiplier effect it generated over the years, in guiding and channelizing its inherent strength to make India a global player in auto components industry. “Last year, India’s exports of auto components grew by 3.5 per cent to 10.8 billion US Dollars compared to the previous year 2014-15. “The components exported by India practically included the entire spectrum – engine parts, transmission parts, brake system & components, body parts, exhaust systems and turbochargers. “According to Automotive Mission Plan 2016-26 (AMP), the Indian auto component industry is aiming an impressive USD 200 billion in revenue by 2026, with exports in the region of USD 80 billion compared to USD 11 billion last year. “Nigeria is the major focus market in Africa for both India’s automobiles as well as the auto components. Indian automobile majors including Ashok Leyland, Bajaj, Hero Honda, Kinetic, Mahindra & Mahindra, Maruti, Tata, and TVS have established their presence in Nigeria. “The deliberations of the ACMA delegation with their Nigerian counterparts, I am confident, will deepen the cooperation in auto component sector too. “The Indian industry and businesses are keen to engage further with their Nigerian counterparts to take advantage of the untapped potential between the two countries in diverse sectors of the economy. “The launch of ASSOCHAM India-Nigeria Business Council in Abuja on 28 June this year, in the presence of H.E. Mr. Okechukwu Enelamah, Federal Minister of Trade, Investment & Industry, is symbolic of the recognition by the Indian businesses of the importance of Nigeria as a growing and strong partner, and also Nigerian businesses of India. “I would like to draw your attention to the enabling environment prevailing between India and Nigeria to advance your business propositions. “India-Nigeria engagement is historic and deep-rooted. It has been strengthened in the post-independent era. Our two countries share democratic norms; bestowed with multi-ethnic diversity; enjoy people-to-people ties and similarity of orientation on a range of global issues. “Both countries enjoy many complementary and comparative advantages which need to be harnessed for mutual benefit – for growth, employment generation, and overall progress. “In a sense, this provides the enabling environment. The event today is one such mutually beneficial engagement that could not only expand bilateral trade but also spur employment generation in Nigeria. “Nigeria, the largest economy in Africa contributing a quarter of Africa’s GDP and with a fifth of the population of the Continent, is a major market and also a key hub for entering the West African market. “It is this realisation that is sinking fast in the mind of Indian companies and businesses. “The ACMA delegation should note that Nigeria is rated among the Next 11 leading Global Growth Generators (3G) over the next 40 years. “From India’s perspective, Nigeria is the largest destination in Africa for manufactured products. “Over time, India widened the scope of its economic engagement with Nigeria. Indian companies now have a significant presence in key sectors of Nigerian economy including IT, power, automobiles, telecommunications, agriculture, defence, health, electricity transmission, pharma, steel, herbals, software services, machinery and expertise in the form of joint ventures and consultancy services.” In his keynote address, the Director, Policy and Planning, National Automotive Design and Development Council (NADDC), Luqman Mamudu said India has reached a very high level in quality achievement. He said, “That is why we encourage them to sell to Nigeria because, in Nigeria, we have the incidents of false parts and even importation of second-hand parts. “So if we can embrace the products of the ACMA, I think it is better for us. That’s number one. “Secondly, we are hoping that as they are selling to Nigeria, once they are able to sell sufficient volume and define partnership with some of our people who are buying from them, there is nothing wrong with them setting up production facilities locally. “If they are now producing in Nigeria, that means there is a possibility for them to employ our people. But for now, their impact is to remove the incidents of fake parts and we Nigerians have a very high incident of fake parts and as they now sell in Nigeria, we now have a very genuine combative with fake parts and second-hand parts.