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Indian auto industry invests in the future

14. January 2021

The Indian automotive industry, which contributes about 2.3 percent to the gross domestic product, is suffering from the aftermath of the Covid-19 situation, such as difficulties in the supply chain and impaired productivity. As a result, the Association of Indian Automotive Suppliers (ACMA) is proposing a “breather” in terms of the introduction of new regulations and a long-term and sustainable strategy by the government for the industry to secure investment. ACMA President Deepak Jain said in an interview that the current difficult environment is pushing the industry to the limit in terms of implementing new regulations on time and shouldering the necessary investments. Jain cited as an example the conversion of the BS-IV emission standard to BS-VI, for which the industry has invested the equivalent of nearly $10.9 billion, of which automotive suppliers accounted for 40 to 50 percent.

 

 

The industry currently employs an estimated 5 million workers and is now demanding a reliable timeline from the government for the next 10 to 15 years, clearly defining the relevant regulations and plans so that companies can prepare accordingly. ACMA President Jain said that the supplier industry’s ability to invest has been significantly reduced. He cited a slightly more distant decline in overall demand for auto parts and, currently, the global coronavirus outbreak as reasons. “In general, the industry needs more stability; in the past, there have been too many obstacles. We need to stabilize the industry and strengthen it through sustainable planning. We want to achieve this through better networking and collaboration among all the stakeholders involved,” Jain added.

Currently, there are still disruptions in the automotive supply chain in India, even though demand is at a low level. As a result, the ACMA association is calling for the government to address the problem as a whole and provide assistance and support to both producers and buyers, domestic and abroad. The association estimates that the automotive sector is playing an important role in the recovery of the Indian economy after the Corona crisis. In the last fiscal year, the auto supply industry posted sales of $49.2 billion, down 11.7 percent from the previous year. Recently, the Indian government also introduced mandatory certification for additional automotive components such as wheels and rims, auto glass and electronic components. The vast majority of standards for the Indian automotive industry are found in the AIS. AIS stands for Automotive Industry Standards, the technical automotive standards for India. MPR International GmbH – India Certification will be pleased to assist you with your AIS certification and is also available to answer any questions you may have.

AIS stands for Automotive Industry Standards, the technical automotive standards for India, while TAC stands for Type Approval Certificate. Depending on the product category, there are different certification steps. We will be happy to advise you on certification in India and are always available to answer your questions.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769261, US: +1 773 654-2673).
If you have any questions you can also use our chat-window in the bottom right. (Please check your browser settings if you can’t see the window)

You can also check out our free AIS-Brochure, which can be downloaded right here as a PDF file.

MPR Author

About the author: Julian Busch is founder and managing director of MPR International GmbH
Publisher: MPR International GmbH

Tel.: +49 69 271 37 69 261

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