Establishing of a reliable robust auto component supply chain

July 3, 2021 5:17 pm

Smart machines are enabled with a layer of intelligence and an ability to be connected.

India is still largely dependent on imported automobile components and auto parts. How is the industry planning to reduce the same to accommodate localised manufacturing?

From an overall business perspective in the recent years, imports of auto components have been growing at about 6 percent CAGR and the exports of auto components have been growing at a higher CAGR of around 8 percent, which indicates the competence and scalability of the sector. India is being among the fastest growing GDP nations.

The presence and forecast of bigger local markets – for transportation – add to the attractiveness of the sector. The global supply chain realignments that are happening in the post pandemic times are also helping. So, we believe the industry will stay ahead with investments in better technologies and competence that will lead to competitiveness.

What kinds of innovations have been happening in the component market? How are you meeting the innovative demands to remain competitive?

The key innovations from a component perspective are: reduction in cost; time to manufacture and ability to be customised to suit different needs. These are largely handled by the auto companies itself with a machine tool, and from point of view of Ace Micromatic perspective: it has all been about better productivity with lower cycle time, reduced total cost of ownership with services as part of the machine supply, And, importantly, smart machines are enabled with a layer of intelligence and an ability to be connected with the shop environment and other systems. We have been pioneers in this space with production & productivity monitoring solutions since 2004, much before, the term Industry 4.0 was coined.

Indian automobile industry has been experiencing a slowdown for almost a decade. How is it impacting your businesses?

There has been growing uncertainty in the personal transportation space with the emergence of EV’s, shared mobility etc. The machine tool sector from the highs of 18-19’s, saw a decline in numbers, even before the pandemic had affected us. This has also been the case with us. However, the impact has been less severe and more manageable. Thanks to our range of solutions, effective managing of finances, services business and spread to wider geographical reaches.

What kind of regulatory, policy and financial assistance have you been expecting from the government to realign the market’s confidence?

The automotive sector has its fair share of regulatory and policy impact. The BS VI, and the timing – when and how it was introduced – did have an impact on the slowing down. The market size itself is impacted by the end vehicle taxation in the hands of the individual buyer. This is something that policy should look at creatively.

We are hopeful, that the scrappage policy with good implementation will be beneficial and the automotive industry will respond by setting up recycling infrastructure. This, we believe, will create demand and impact, upon both the auto and the machine tool business.

What measures are you planning to increase the demand for locally produced parts and components for the automobile industry?

We believe that the Ace Micromatic Group has been playing a significant role in the establishing of a reliable robust auto component supply chain by working very closely with the Tier-2 and Tier-3 vendors. We provide cost effective machines with the added assurance of support and handholding. Furthermore, we will keep getting better, more comprehensive in approach, and innovative in our offerings.