The annual Auto Component Manufacturers Association (ACMA) Summit for 2019 takes places during the worst slowdown in Indian automotive history. With demand for new vehicles at its lowest with steady decline month-on-month for nine straight months, the Industry and the government seek a solution to the downturn.
As a part of the opening remarks by Kenichi Ayukawa managing director and CEO of Maruti Suzuki India Ltd. he urged that the component industry must develop their capability with a key focus on quality, develop capability of suppliers, and invest more into R&D.
Ayukawa urges ACMA to take a more quality-oriented approach. He stated “it is time now for India to manufacture zero defect products. The top management at suppliers has to commit itself fully towards zero manufacturing defect.”
He went on to say that analysis has shown that more than half of the defects are due to human error and that the industry is under-estimating the importance of training and skilling our people.
Regarding strengthening in research and development, Ayukawa said “If India has to be competitive in the world of tomorrow, my message is – start developing in-house R&D capability. R&D capability is a very long drawn process and the results come slowly. We have to be patient and stay committed.”
In India, automakers like Maruti Suzuki sell products which are 90% localised. Some electronic components like ECUs are imported. Ayukawa has challenged the component industry to invest more into R7D as to reach 100% localised products. He said, “If anybody can make electronic components and some key parts in India with Quality and Reliability, it will help not only our company but the entire Indian automobile industry.”
As for government policy, he stated that If the government sets targets on the end-goals and allows freedom to the industry players to choose the technology that is best suited to achieve the end-goals. Such “technology-agnostic approach” will give the freedom for technology-choice while keeping focus on the target.”
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