The Society of Indian Automobile Manufacturers (SIAM) hosted the Automotive Sourcing Conclave 2024, centered on the theme of building resilient supply chains. This event took place against the backdrop of India's aspirations for self-reliance, with officials, industry leaders, and experts coming together to discuss strategies to bolster the automotive sector's supply chain.
One of the central themes explored during the conclave was enhancing the supply chain ecosystem for electrified vehicles. Discussions centered around the urgent need to support the rapid growth of electric vehicles (EVs) and how the industry must adapt to the requirements of this new focus. Another significant topic was the adoption of innovative technologies, ensuring the automotive sector is prepared for future advancements.
Dr. Hanif Qureshi, Additional Secretary at the Ministry of Heavy Industries, emphasized the government’s commitment to localization and reducing reliance on imports. He revealed investment figures of INR 18,000 crore aimed at boosting domestic production. This investment is part of the broader initiative to strengthen India’s automotive supply chain ecosystem, which is deemed necessary not just for the industry's growth but for the country’s economic stability.
Further reinforcing this agenda, Vimal Anand, Joint Secretary at the Ministry of Commerce, echoed the government’s dedication to supporting micro, small, and medium-sized enterprises (MSMEs) and fostering innovation. This commitment is seen as pivotal for fortifying the supply chain, reducing import dependency, and nurturing local craftsmanship.
Former SIAM President, Vinod Aggarwal, shared ambitious goals, such as reducing imports by INR 25,000 crore within the next five years. His focus on localizing the production of key components highlights the importance of self-sufficiency. Meanwhile, Shradha Suri Marwah, President of the Automotive Component Manufacturers Association of India (ACMA), noted the impressive turnover of the auto component sector, which reached USD 74 billion for the fiscal year 2024, reflecting the vibrancy of domestic manufacturing.
Sunil Kakkar, Chairman of SIAM’s Aatmanirbhar Bharat Sourcing Group, highlighted the automotive sector's significant contribution to India's manufacturing GDP, producing millions of vehicles annually. He reported notable success, with the industry achieving a reduction of INR 7,000 crore in net imports, showcasing the effectiveness of localization strategies.
The effect of increased electronic content on vehicles was also discussed, with speakers highlighting the importance of embracing this change to remain competitive. For companies like Amararaja Advanced Cell Technologies and JSW MG Motors, sustainability and innovation are at the forefront, emphasizing alternative fuel powertrains and environmentally responsible practices.
Overall, the SIAM Automotive Sourcing Conclave 2024 provided fertile ground for collaboration between the government and industry players. It was clear through various discussions and presentations during the conclave, the road to resilient supply chains is paved with local innovation, government support for localization, and the drive to reduce import dependency. Stakeholders acknowledged the interconnected challenges and opportunities they face as they navigate this dynamic environment, underscoring the importance of unity and advancement for the industry’s future.