He pointed out that there is a huge opportunity in the auto parts industry due to the big push towards electrification.
With the increasing consumption of electric vehicles, the industry is witnessing a rapid transformation in which the auto parts sector becomes an integral part of the electric vehicle manufacturing supply chain.
The component industry is steadily investing and acquiring technology companies.
“We need to continue localization…As an industry, we are very lucky to be working with the electronics industry as well. Together, we are able to consider the scale of our localization efforts, which we must It’s not going to happen,” Kapoor said.
In the first half of the current financial year, auto parts imports increased by 17.2% to US$10.1 billion (79,815 kroner) from US$8.7 billion (64,310 kroner) in the first half of 2021-22.
Asia accounted for 65% of imports, followed by Europe and North America at 26% and 8% respectively. Imports from Asia increased by 21%, Europe by 6% and North America by 29%.
Kapur noted that the ACMA Executive Committee has welcomed two members from the electronics industry.
“The government is also pushing this and their agenda is also to push localization, which is also a big push for us as an industry because when we look at the future electronics import volume as a country… We definitely need to scale up our localization efforts,” said Kapur.
When asked if there could be a conflict of interest between auto parts makers and the electronics industry, he said: Very huge. ”
With this change, he said, there will also be opportunities to bring great talent to the component industry as it evolves and disrupts the shift to the software side of things.
“…40% of the vehicle is expected to be software. This is not the scenario we had before and it is happening very quickly…The automotive industry is becoming a mobility industry in that sense.” said Kapur.
When asked about the business outlook for the auto parts sector for the next financial year, Kapur said: It has been superseded by other export markets. ”
From April to September, the auto parts industry recorded a turnover of Rs 2.65 billion (US$ 33.8 billion), a growth of 34.8% over the first half of last year.
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