Rattan Kapur, president of ACMA, on the trade fair showcasing the automotive component industry's prowess in supplying to the humongous global market, the ACMA Safer Drives initiative and a sharper focus on R&D.
21 Mar 2017 | 5633 Views | By Autocar Pro News Desk
Rattan Kapur, president of the Automotive Component Manufacturers Association of India (ACMA), on showcasing the component industry’s prowess in supplying to the global market, driving digital modes of payment, the ACMA Safer Drives initiative and a sharper focus on R&D. An interview by Amit Panday.
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Rattan Kapur, president of the Automotive Component Manufacturers Association of India (ACMA), on showcasing the component industry’s prowess in supplying to the global market, driving digital modes of payment, the ACMA Safer Drives initiative and a sharper focus on R&D. An interview by Amit Panday.
How do you see the growth of ACMA Automechanika as a business platform for players in the aftermarket over the years? How will the third edition of this jointly organised event be different from the earlier ones?
This is the third edition of ACMA Automechanika New Delhi and the show has evolved into one of the most sought-after automotive events in South Asia.
This year the exhibition will host 525 companies from 17 countries, representing the latest auto components and automotive aftermarket technologies. In comparison to the previous event, exhibition space has increased by 25 percent with participation from many newcomers and industry leaders such as the Schaeffler Group, Ample Autotech, Elofic, ZF India, Shriram Pistons, Valeo India, Mansons, Liqui Moly, and ACDelco among others.
With the growing popularity and India becoming an attractive market, international participation has increased by 40 percent with foreign contingents from China, Germany, Hong Kong, Indonesia, Italy, Japan, Korea, Malaysia, Poland, Russia, Singapore, Taiwan, Thailand, the UAE, and the USA. Interestingly, the fair marks a 28 percent increase in exhibitors.
The third edition of ACMA Automechanika New Delhi will focus on future-oriented technologies and solutions. That apart, the fair is coupled with a series of hi-powered conferences running parallel to the show:
- National Seminar on Preparing Aftermarket for the Digital Economy that will popularise e-commerce and m-wallets among the exhibiting companies, visiting distributors and retailers.
- Panel discussion on Indian Aftermarket — The Road Ahead.
- Panel discussion on Building an Ecosystem to contain increasing accidents and road fatalities. This is part of ACMA’s continued effort to curb sales of spurious/sub-standard products in the grey market that directly or indirectly lead to road fatalities
How is the partnership with Messe Frankfurt evolving over the years?
Our partnership with Messe Frankfurt is strengthening with every edition of the show. The previous edition of ACMA Automechanika New Delhi 2015 was a huge success and received an overwhelming response. The event witnessed 12,861 business visitors and over 436 exhibiting companies (245 domestic and 171 overseas) from 17 countries across the globe.
The tremendous response received in the third edition of the show is a testimony to the successful bond and together with Messe Frankfurt, we look forward to set new benchmarks and build global footprints for the Indian aftermarket.
Is there any specific theme that ACMA plans to follow in the event in New Delhi? Any remarks on how new developments on the front of products and new technologies are aligned with the government’s Make-in-India initiative?
‘Make in India’ is our Prime Minister’s vision to curate a program that can put India on the global manufacturing map. The Indian auto component industry is today a world-class industry, exporting US$ 11 billion annually, a third of its production.
ACMA Automechanika New Delhi will be a true reflection of the component industry’s prowess in serving the global market. Further, with participants from over 17 countries, the show will have an international look.
With the government’s thrust to create a ‘Digital India’, ACMA is organising a seminar on 'Preparing Aftermarket for Digital Economy & Road Ahead'. We endeavour to popularise the thought of new modes of transactions for the aftermarket through e-commerce and m-wallets at the trade fair.
Auto parts e-commerce in India is still at a nascent stage due to the limited presence of major players, small product portfolio and lower customer awareness levels. In 2014, the online auto aftermarket in India was estimated at around US$ 20 million (less than one percent of the overall parts aftermarket at a retail level) and is expected to increase at a CAGR of 7 percent to US$ 150 million by 2020. There are huge opportunities in the B2B and B2C space. Therefore, at the seminar, Amazon, IBM and the National e-Governance Department, government of India will give presentations on the scope of the digital platforms.
How does ACMA plan to handle the issue of counterfeits/sub-standard components at the show?
Tackling counterfeits and sub-standard products is the single biggest challenge facing the aftermarket today. As a part of ACMA’s latest initiative ‘ACMA Safer Drives’, we intend to sensitise the public on the need for abiding road safety rules and usage of genuine auto parts; a special pavilion is being created for this at Hall 11 in Pragati Maidan. This drive is a part of our efforts towards eliminating the use of counterfeit and sub-standard parts, which directly or indirectly lead to road accidents.
One of the key reasons for a thriving counterfeit business in India is the lack of mandated safety standards for aftermarket products, due to which sale and import of counterfeit products cannot be checked.
How is ACMA promoting the drive to improve products and services on the front of quality within the aftermarket space, given that the industry is soon upgrading emission and safety norms across all vehicle categories?
This year we have adopted ‘Winning with Quality & Innovation’ as our theme and we endeavour to focus on strengthening our capabilities for new product development, improving quality standards, evolving our technology for meeting the changing emission and safety standards, upgrading skills of Tier 2 and Tier 3 and popularising digital technology in manufacturing.
Our priorities for the future would be to focus on R&D to help generate IP in India, world-class quality with zero defects and in the process, create the industry’s economic profit i.e. greater returns on capital than the cost of capital to make India an attractive destination for auto component manufacturing investments. Changes such as these and others are sure to have a far-reaching impact on the entire automotive supply chain including the aftermarket.
What can Tier 2, Tier 3 and even smaller suppliers expect from this platform?
The ACMA Automechanika New Delhi trade fair will be the one-stop shop for all the automotive players, including the smaller players. The platform will provide huge opportunities to the industry to collaborate and exchange technical know-how over four days.
The fair will extensively cover the automotive aftermarket through its six product categories of Parts & Components, Electronics & Systems, Accessories & Customising, Repair & Maintenance, Management and Digital Solutions and Car Wash, Care & Reconditioning.
Considering the aftermarket is dominated by a large number of smaller players, the fair is expected to help them in new business opportunities. Also, given the significant growth of the aftermarket in India, Tier 2s and Tier 3s also need to consider this opportunity as the segment enjoys relatively better margins compared to OEM supply.