ACMA has onboarded two non-automotive players as its members. Sunjay Kapur, President, ACMA, told Mobility Outlook that the trend of non-automotive players joining ACMA as members will continue from here on.
Interestingly, both players are from the electronics industry. Kapur did not reveal the names of these players and noted that the formal announcements will be made soon. Currently, none of the 805 members of ACMA is solely focused on electronics.
'The competitive landscape is changing in the automobile industry. We are definitely going to see a new breed of suppliers. We are going to see a lot of changes,' Kapur said.
This new breed of suppliers will not only be limited to electronics as segments including software, autonomous driving, telematics, connectivity, and more are also spreading their wings in India's automobile industry. Electronics, as a matter of fact, is the common thread that binds these segments together.
The global automotive electronics market size, as per Research and Market, is expected to reach $392.49 billion by 2028. It is anticipated to register a CAGR of 7.9% from 2021 to 2028. ACMA, in collaboration with PwC, is working to enable the future of electronic and related automobile components in the country.
'We are trying to figure out how we can incorporate more businesses into the auto components industry. I cannot put a number on it as the development is in its initial phases,' Kapur explained.
The opportunity for the electronics industry and the allied players to align with the automobile industry is huge, and the criteria for them to be a part of this industry, as per Kapur, is how well they can synergise their operations with the industry. 'Companies will move towards EVs and as they move towards EVs, certain things will change, and certain things will remain the same,' Kapur said.
Start-ups are an important part of how ACMA is trying to chart India's auto components market growth story. Kapur is certain that start-ups, owing to their agility and ability to adapt, will play a critical role in shaping the future of India's auto components industry.
'There is so much disruption that once a new solution is developed, start-ups and established companies can work together to take the same to the next level. We are already seeing the share of electronic components increase in the industry and this trend will continue to progress from here,' Kapur said.
The turnover of the automotive component industry stood at INR 4.20 lakh crore ($56.5 billion) for the period April 2021 to March 2022, registering a growth of 23% over the previous year. A report by the ACMA noted that this was the highest ever revenue recorded by the Indian auto component industry. Auto component sales to OEMs, in the domestic market, at INR 3.41 lakh crore ($45.8 billion), grew 22% compared to the previous year.