On the eve of India-Korea Business Summit 2018, organized by Confederation of Indian Industry on Tuesday, the conglomerates of automobile industry of India highlighted the areas where Korean counterpart can work together to enhance technology and innovations in the sector.
Dr Asha Ram Sihag, secretary, Department of Heavy Industry (DHI) said that Indian auto industry wants to have larger participation of Korean players and new the National Auto Policy (NAP) 2018 will help in opening doors of investments in this sector. “Once the new national automotive policy will get implemented it will present a suitable environment for Korean investors to plan their investment in this direction,” he said. He also said that the DHI is in consultation with stakeholders to put the new National auto policy which will get finalised in a couple of months from now.
Talking about the opportunities for Korean auto companies under NAP, Nirmal Minda, president of Auto Component Manufacturers Association (ACMA) of India said this is a good opportunity for Korean OEM to enhance their presence in India and bridge the trade deficit between the two countries. “Indian component industry imported worth Rs 1.5 billion from South Korea in 2017 while we exported only USD 140 million to Korea. This gap will be bridged only when Korean OEMs will work closely with Indian counterparts and enhance R&D, engineering and innovation in the sector.” He also informed that ACMA is promoting small and medium enterprises of Korean auto sector who are keen to work in India but have not yet ventured into the country by organising matchmaking program where the firms can find their suitable Indian counterpart. Outlining the current scenario he said that around 25 JVs exists today between Indian and Korean companies.
Pointing out the approximate surge in investment that NAP is expected to bring in the sector, he said “Currently, India auto component sector contributes to 49 percent of the manufacturing sector. This policy as of now will create an approximate additional investment estimated to USD 25-30 billion in the component sector.”
Highlighting on the areas where Indian-Korean auto companies can work together under the NAP, Pawan Goenka, managing director, Mahindra&Mahindra said electric mobility is given utmost attention under the new policy. “Lighting-weighting technology is one area where we see lot of Korean companies can work together in India,” he highlighted.
The session underlined that not only centre but the state governments as well are eager to grasp opportunities offered by Korean auto industry. Dignitaries of different state government like Tamil Nadu, Andhra Pradesh and Telangana also showcased their respective investment hotspots and interests to form technical collaborations and JVs with Korean auto firms. Anant Gangaram Geete, minister of Heavy Industries and Public Enterprises, concluded the session saying that ‘Making in India’ initiative of PM Narendra Modi has motivated a competitive mode within the Indian states which is good for the growth of Indian automotive industry and also encouraged Korean investors to setup industries and business in India.
–By Shruti Mishra
