New normal growth for automotive gears industry

By OEM Update Editorial November 24, 2020 6:33 pm

India’s automotive segment has experienced a decent recovery in the last few months. As recorded in September,  20 percent month-on-month uptick was seen in domestic sales of as greater need for health, safety and security is prompting people to buy passenger automobiles and rely less on public transportation.

The rising demand for personal mobility has also contributed to growth in fuel sales especially petrol and diesel, which is now expected to return to pre-COVID levels by the end of current financial year. A modest year-on-year increase in GST collections of September is also telltale sign of economic recovery and resuming pace in business operations, boding well for all major industries including automotive. As demand for first and second-hand vehicles continue to expand, the need for auto repairs and servicing will increase bringing a corresponding growth in the automotive aftermarket segment. Adopting a digital model will also help businesses in aftermarkets to broaden their reach and capture demand across a wider geography.

Similarly, collaboration will be vital for auto component manufacturers who are looking to deepen their aftermarket presence across growth clusters in micro-markets. Offering tremendous opportunity to the segment, India’s leading international trade fair for the automotive service industry – ACMA Aeromechanic a New Delhi will re-unite auto component makers under a secure b2b environment to explore innovations for the ‘new normal’ and engage in invaluable business exchange.

For the coming edition of the trade fair, organisers Messe Frankfurt India and Automotive Component Manufacturers Association (ACMA) are also looking into the option of hybrid exhibition model. While digital integration can enable a broader reach, physical exhibition will continue to provide a stronger environment for collaboration in the aftermarket segment.

Manufacturers Association (ACMA), while expressing happiness on the better than expected recovery in the PV and Two wheeler segment, remained cautiously optimistic for the ensuing months after the festive season:“There are lot of challenges ahead, especially as we are not yet out of the pandemic; local lockdowns accompanied with logistics issues continue to pose a challenge for the industry. Going forward, a stable policy and regulatory regime, with a singular benign GST rate for the auto component industry among others would provide a fillip to the sector.”

“With emphasis on ‘Atmanirbharta’ by the Government, the automotive industry in India is focusing on deep localisation which would not only make the industry globally competitive but also add to the benefit of the consumers by making available products of superior quality at affordable price points.” Mehta wrote.

Currently, the auto-components industry accounts for 2.3 per cent of India’s Gross Domestic Product (GDP) and employs around 5 million people directly and indirectly. As auto component manufacturers look for a stronger approach, localising manufacturing operations, adopting omni-channel models and focusing on collaboration would greatly help in regaining momentum in the market.

For more details: www.in.messefrankfurt.com