Innovation key for Auto component industry's growth

Bangalore, May 5: Indian Auto and Auto Component sector should constantly innovate, upgrade and bring down the costs to remain globally competitive, Engineering Export Promotion Council (EEPC) member B R Rajashekhar said here today.

Speaking at a seminar jointly organised by Federation of Karnataka Chamber of Commerce and Industry (FKCCI) and EEPC titled 'Auto Industry--Global Competitiveness through Innovation", he said the Indian auto component industry was dynamic enough to be among the top five component makers in the world including the US, Japan, China and Germany by the year 2025.

Due to industry friendly policies, the country was emerging as a hub for research and development of automotive components. Export potential was 'sky high' and the key areas in which the industry should try to excel was in metal components, high tech components like electronic fuel injectors and components involving highly skilled labour, he said.

He said India contributed less than one per cent of global exports of auto components. It exports constituted 36 per cent to the EU, 26 per cent the US and 16 per cent to Asian countries.

FKCCI President R C Purohit said contributing five per cent to the national GDP, the auto industry which had witnessed a growth of 19.35 per cent last year. The production of vehicles had reached 9.7 million last year compared to just two million in 1991 when the process of economic liberalisation had begun.

India held huge potential in the both auto and auto component sectors due to its technological, cost and manpower advantage. This had resulted in the country becoming a outsourcing hub for auto parts for global auto majors like Ford, General Motors, Daimler Chrysler, Fiat, Volkawagon and Toyota, he said.

UNI