There is a huge outsourcing potential for the Indian auto components in the global markets, which is estimated to be around $25 billion. The Indian auto components also hold great opportunities to participate in the new vehicle platform development of the Indian Original Equipment Manufacturers (OEMs), said Automotive Component Manufacturers Association (Acma) of India.
This can only be realised if the component manufacturers imbibe the research and development (R&D) culture as well as acquire the in-house capability of designing and developing new generation auto components in close partnership and collaboration with OEMs and tier-1 companies, Acma said. However, in the current global scenario, the ability to design and develop new products is emerging as a key decisive factor in determining global competitiveness vis--vis other low cost countries, it added.
Keeping in mind the roadmap given in the Automotive Mission Plan 2006-2016 and need for auto component industry to develop R&D capacity and new product development capability, Acma will focus on a theme called Becoming an R&D Powerhouse: The Next Frontier, at its 48th annual session, to be held in New Delhi on September 3, 2008.
To further this effort and have a continuous focus on R&D, Acma has signed up with MIT (Massachusetts Institute of Technology), Sloan School of Management, Cambridge of the US for a programme on product design & development, specially tailored for the auto component sector.
This programme is aimed at bringing about the mindset change in CEOs to embrace the R&D culture and lead by example in spreading the R&D movement in the Indian auto component sector.