The plans to accelerate local procurement and boost exports come amid Prime Minister Narendra Modi's clarion call for Atmanirbhar Bharat. It is also being fuelled by the geopolitical tensions with China, which has been one of the key sources for imports for manufacturers across several sectors.
India’s auto component industry imported parts worth Rs 1.09 trillion in FY20, against Rs 1.23 trillion a year ago. It constituted 31.2 per cent of the turnover, according to Auto Component Manufacturers Association (Acma). Exports for the same period stood at Rs 1.02 trillion, against Rs 1.06 trillion a year ago, accounting for 29.4 per cent of the turnover.
Ashok Taneja, president and MD at Shriram Pistons & Rings, says the company has been working towards becoming self-reliant for a while now.
At the crux of the strategy is to become a “globally competitive supplier and a supplier of choice for the OEMs (original equipment manufacturers) globally.” His firm that currently gets a fourth of its revenue from exports is looking at increasing it to 30 per cent in the next three years.
Shriram Pistons & Rings, he said, has been working towards achieving sustainable cost competitiveness. A sharper focus on R&D, design, development, and testing has helped the firm generate intellectual property rights (IPR).
India may expand its share in the global auto component trade to 4-5 per cent by 2026, emphasising a targeted export expansion and import substitution programme for key components, McKinsey said.
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