SIAM President Kenichi Ayukawa outlines 5 focus areas for long-term auto industry growth | The Financial Express

SIAM President Kenichi Ayukawa outlines 5 focus areas for long-term auto industry growth

The auto industry veteran said that the it is imperative that the automotive industry bodies – SIAM and ACMA – collaborate and put significant efforts to bring back and sustain the growth of the industry.

SIAM President Kenichi Ayukawa outlines 5 focus areas for long-term auto industry growth

The Automotive Components Manufacturers Association (ACMA) hosted its 62nd Annual Convention in New Delhi, after a gap of 3 years.

In his inaugral speech, Kenichi Ayukawa, President, SIAM and Executive Vice-Chairman, Maruti Suzuki India congratulated the Indian component industry for achieving highest ever turnover in FY2021-22.

“I am also grateful to ACMA for their strong support and collaboration with SIAM in the last two years. SIAM and ACMA have together drafted a first-ever comprehensive localisation roadmap for the industry and have also worked in close coordination for industry’s significant contribution to the country during the pandemic.”

“Be it scaling up of the production capacity of PSA Oxygen generation plant manufacturers. Or facilitating production of ventilators; taking up the production of face masks and PPE kits. I am also happy to see that SIAM and ACMA continue to work closely on many regulations and policy issues. I hope to see such healthy collaboration between SIAM and ACMA in the future, as well,” said Ayukawa.

The Indian auto industry is one of the key driver of economic growth in the country. It has a turnover of around $120 billion (Rs 9,49,680 crore), generates employment for more than 3 crore people and contributes around Rs 1.5 lakh crore to GST.

“Currently, the automobile industry is going through a unique phase. Some segments have started to see recovery after the pandemic, while some other segments are still struggling. For example, mass segments like entry level cars and two-wheelers are facing huge reduction in demand owning to significant increase in the acquisition cost.”

On the other hand, Ayukawa points out that there were some segments which are seeing good demand, but are burdened by supply side challenges mainly the semiconductor shortage.

As a result, the automotive industry volumes are still below the peak of FY2018-19.

Suggestions for long-term sustainable growth

The auto industry veteran said that the it is imperative that the automotive industry bodies – SIAM and ACMA – collaborate and put significant efforts to bring back and sustain the growth of the industry.

He shared some specific requests for the auto component industry to ensure long-term sustainable growth, Ayukawa said that the industry should focus on – localisation, quality, invest in new futuristic technologies, invest in R&D and lastly re-invest in the core business.

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