 "Auto component makers look to tap opportunities in electronic parts")
With the use of electronic components in cars increasing, the $39-billion domestic automobile component industry is gearing up to tap opportunities in the space and looking at partnering with Taiwanese companies. Currently, the bulk of the requirement is being met through imports.
Last month, the apex body of the industry had commissioned a study to Frost & Sullivan to evaluate the scope for Indian component makers in the space. “We do not have a domestic electronic base. The study will help us identify segments in the electronics component value chain that will be suitable for our industry.
We need to build an ecosystem to promote this area,” said Vinnie Mehta, director-general, Auto Components Manufacturers Association (Acma). The report is expected in four months.
In July, Acma took a delegation of auto component makers to Taiwan to explore the interest of companies there in partnering with Indian manufacturers and investing in manufacturing in India. Shriram Pistons, Global Autotech, Sandhar Technologies, Minda Industries, Minda Corp, Essae Digitronics and Raunaq Automotive were part of the delegation. Taiwanese manufacturers are world-leaders in electronics manufacturing and have a positive outlook towards India, said Mehta.
JBM Group Executive Director Nishant Arya said the use of electronics would rise. “Initially, the domestic industry can look at assembly of such components and then go to the next stage of manufacturing. As a company, we are currently into assembly and part manufacturing”, he said. According to a McKinsey report, the value of electronics content in a car will double by 2030.
“Given India's current dependence on electronics import, this would be a major headwind the Indian automotive components industry would have to counter. New players could start exploring hardware assembly, while established players and new technology partners could lead in product innovation, software and system integration,” it said.
TECH SPACE
Last month, the apex body of the industry had commissioned a study to Frost & Sullivan to evaluate the scope for Indian component makers in the space. “We do not have a domestic electronic base. The study will help us identify segments in the electronics component value chain that will be suitable for our industry.
We need to build an ecosystem to promote this area,” said Vinnie Mehta, director-general, Auto Components Manufacturers Association (Acma). The report is expected in four months.
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Most cars have electronics that account for 10 per cent of the vehicle price and it goes up to 20 per cent for premium cars. The value of electronics is projected to increase to about 40 per cent by 2030. The electronics components used in cars relate to safety, auto cruise, navigation, parking assistance, infotainment, sensors and anti-theft systems, among others.
In July, Acma took a delegation of auto component makers to Taiwan to explore the interest of companies there in partnering with Indian manufacturers and investing in manufacturing in India. Shriram Pistons, Global Autotech, Sandhar Technologies, Minda Industries, Minda Corp, Essae Digitronics and Raunaq Automotive were part of the delegation. Taiwanese manufacturers are world-leaders in electronics manufacturing and have a positive outlook towards India, said Mehta.
JBM Group Executive Director Nishant Arya said the use of electronics would rise. “Initially, the domestic industry can look at assembly of such components and then go to the next stage of manufacturing. As a company, we are currently into assembly and part manufacturing”, he said. According to a McKinsey report, the value of electronics content in a car will double by 2030.
“Given India's current dependence on electronics import, this would be a major headwind the Indian automotive components industry would have to counter. New players could start exploring hardware assembly, while established players and new technology partners could lead in product innovation, software and system integration,” it said.
TECH SPACE
- Most cars have such parts that account for over 10% of the vehicle price and it goes up to 20% for premium cars
- The value of electronics is projected to increase to about 40% by 2030
- Sector is looking at tying up with Taiwanese firms