By Abhishek Shukla, Vendor Development & Marketing, Saison Components & Solutions
The Indian auto-components industry has experienced healthy growth over the last few years. The auto-component industry of India has expanded by 18.3 per cent to reach at a level of US$ 51.2 billion in FY 2017-18.
The auto-components industry accounts for 2.3 per cent of India’s Gross Domestic Product (GDP) and employs as many as 1.5 million people directly and indirectly each. A stable government framework, increased purchasing power, large domestic market, and an ever increasing development in the long term prospects of the industry are definitely perceived as a huge opportunity area.
Is the Government taken any Initiatives in shaping the Industry??
Yes of Couse , the Government of India’s Automotive Mission Plan (AMP) 2006–2016 has come a long way in ensuring growth for the sector.
The FAME Scheme that was formulated by Department of Heavy Industry led to a continuous increase in registered OEMs and vehicle models. Also, the scheme enhanced the sales of electric vehicles and about 261,507 electric/hybrid vehicles were supported under the scheme up to December 6, 2018. In February 2019, the Government of India approved the FAME-II scheme with a fund requirement of Rs 10,000 crore (US$ 1.39 billion) for FY20-22.
The project Under National Automotive Testing and R&D Infrastructure (NATRiP) provide various facilities including passive safety labs comprising of crash core facility and crash instrumentations including dummies were established at ICAT-Manesar & ARAI-Pune
To give a fresh thrust to e-mobility in public transport, Department of Heavy Industry announced the launch of public & shared mobility based on electric powertrain.
The scheme undertaking by the government of India, Indian Automobile industry is surely to expected to achieve a turnover of $300 billion by the year 2026 and will grow at a rate of CAGR 15 per cent from its current revenue of $74 billion.
The Automotive Mission Plan (AMP) 2016-26 which will help the automotive industry to grow and will benefit Indian economy in the Contribution of auto industry in the country’s GDP will rise to over 12 per cent Provide Around 65 million incremental number of direct and indirect jobs will be created and End of life Policy will be implemented for old vehicles
Auto Components major market & trend to look at
The major part of Auto Components is divided in three share, Engine parts’ accounts for 31 per cent of the entire product range of the auto components sector followed by ‘drive transmission and steering parts’ (19 per cent).
Original Equipment Manufacturers (OEMs) dominate production volumes by market range; encouragingly, exports account for a round 28 per cent.
Two wheelers’ is the largest domestic customer segment for the auto components industry. EV Vehicle being its major focussed.
Opportunities in EV market
The National Democratic Alliance (NDA) government wants only electric vehicles to ply on India’s roads by 2050 as part of its commitment to reduce greenhouse gas emissions under the global agreement on climate change, and to reduce spending on oil imports, which, according to one estimate, could double to an annual $300 billion by that year.
Coming up with India’s state-owned EESL awarding a Rs. 1120 crore order in September’17 to TATA Motors Ltd to supply 10k electric cars which had to be in 2 phases of 1st being of 500 by November end and 9500 cars in the second phase. Tata Motors Ltd won the EESL contract, with Mahindra and Mahindra Ltd matching its bid and winning 30% of the order
Chennai-based automobile manufacturer Ashok Leyland has said that it is open for partnership with Elon Musk-owned Tesla to help the latter deploy its vehicles in India. According to Venkatesh Natarajan, senior vice president and chief digital officer of Ashok Leyland, multiple agencies will be involved in this process. This development comes in after Musk expressed his interest in expanding its operation in India this year or definitely by next year.
South Korea’s Hyundai Motors has been working on electric vehicles which run on hydrogen fuel cells. The company has been developing both lithium-ion battery electric vehicles and hydrogen fuel cell EVs and is expected to launch its first electric vehicle this fiscal year in India.
Last year TATA motors in collaboration with Indian Oil and ISRO launched Fuel Cell bus showing its plan to consider the technology for the long run.
Saison, along with Vinatech will be playing a major role in developing the fuel cell vehicles by supplying the raw materials like supporter, catalyst and Membrane Electrode Assembly (MEA).
Rise of Electronics in Auto Components Industry
The world is seeing electronics permeate all areas. The automotive industry is likely to be no different Country. By 2030, auto electronics content is expected to contribute nearly 45 percent of total automobile cost in India. Rapidly evolving emissions and safety regulations as well as technological disruptions such as connectivity and e-mobility could underpin the demand for electronics at an OEM and customer level. For instance, it is expected that the implementation of BS-VI standards will lead to a spike in demand for components like catalytic convertors, electronic fuel vehicle, oxygen sensors and intelligent battery sensors.
Also Earlier, EESL invited the bid for 2000 electric vehicle chargers which was earlier planned for 4000 chargers, later shifted in phases considering all the eligible players and total market demand.
The use of Supercapacitor in the electric vehicle will be a must in the future.
Saison assures of playing an important role in the electric Vehicle market in future by making a hybrid battery.
Other than this, Saison also offers RF Antenna, GPS Antenna Ferrite Bead, Inductor, Wireless charging coil, NFC product& displays to support the auto components industry.
