Munot said they would target the after sales market as an entry point for exports since it would be relatively easier to enter than as suppliers to original equipment manufacturers (OEMs). "After all, export is export, whether to the OEMs or to the after sales market," he said.

Citing the experience of Mexico, where as many as 30 per cent of small- and medium-sized component manufacturers `vanished' once multinational car manufacturers entered it with their concept of tiered suppliers, Munot said this could happen in India, too, if immediate action is not taken.

Most Indian component manufacturers have very low, unviable volumes, a situation which has been aggravated by thecentral government having granted licences to 12 foreign car manufacturers for the mid-sized segment, all of who are bringing in their international suppliers.

He pointed to the Chinese model, where only one car manufacturer has been given a licence, allowing him to reach volumes of 150,000 per annum before granting a licence to a second car manufacturer and thereby creating sufficient volumes for the entire supply chain. India has not ensured economic volumes for either the car or the component manufacturer, he lamented.

ACMA will play an active role in helping members promote exports and overcome the present situation, Munot said. Among the measures identified are participating in the AutoMeccanica exhibition currently underway in Germany, where 90 Indian component suppliers will display their products. For the first time, it has set up meetings between its members and buyers, having received confirmations for 35 such `structured' meetings, who ACMA has invited for a one-to-one interaction.

This isthe first time that ACMA has taken such a step, Munot admitted, adding that they would also seek to strengthen existing ties.

ACMA is also talking to international logistics major, Unipart, to allow its members to use Unipart's worldwide facilities on a chargeable basis. In addition, it is also exploring the possibility of cooperation between the big Indian component manufacturers who have warehouses in the US allowing access to smaller manufacturers.

While 130 manufacturers exported auto components worth US $375 million last year, predominantly in the after sales market, ACMA has set a target of $1 billion worth component exports by 2003-2004. Munot added that the auto component sector is a net foreign exchange earner and while industry was working to remain competitive they also wanted government to offer it some sops, as it did to the software industry.

Among the benefits that the auto components industry is looking for is; its recognition as a potential forex earner and lowering of the Rs 20-crorecap on import of capital goods to Rs 2 crore, so that smaller companies would be able to avail the benefits of the EPCG scheme.

ACMA has a total strength of 360 members, 20 of who have already acquired QS 9000 certification while several others are in the process of doing so. This is expected to facilitate their products being acceptable to international manufacturers. However, with a worldwide excess capacity of 30 per cent in the automobile sector and with international manufacturers going in for the tiered system of supply, Munot accepted that smaller Indian component manufacturers could `vanish' as they did in Mexico.