As much as revenge spending has become a fashionable term to define the behavioural patterns of car buyers, ‘revenge participation’ would be appropriate for component makers at the 2023 Auto Expo show in Delhi’s Pragati Maidan.
This explains why the exercise of renting out stalls was a walk in the park for the 60,000 square metre floor space. Compare this to the efforts of the Society of Indian Automobile Manufacturers (SIAM) which struggled to convince its members to participate in the Auto Expo while the Automotive Component Manufacturers Association of India (ACMA) had people queuing up a month before the show begins on January 12.
The enthusiasm is understandable given that this event is happening a good three years after the pandemic which derailed the schedules. Component makers are now extra keen on showcasing their products and technologies to visitors from India and abroad.
Today, the mood is a lot better thanks to the economy now back on track, the auto industry doing well, the semiconductor shortage having eased out considerably, stronger OEM–supplier relationships and, most importantly, the China Plus One business strategy.
Showcasing Competencies
No wonder Sunjay Kapur, President, ACMA & Chairman, Sona Comstar, believes that the Auto Expo 2023- Components will create new opportunities for suppliers and showcase their prowess in a fast-transforming arena. Revenge participation, hence, puts this level of enthusiasm for the event in perspective.
In all fairness, while the auto industry is still not out of the woods (given the headwinds the two-wheeler industry is facing), the positive side is that both suppliers and OEMs have learnt to adjust according to the situation. The last two years have made them come even closer and work based on the availability of supplies.
The pandemic has also prompted companies to focus on China Plus One which means de-risking their business model and looking at other countries (beyond China). Many companies this writer spoke to said they were now seeing huge business opportunities from both domestic and overseas customers. Consequently, both Tier-1 and Tier-2 suppliers are enhancing capacities and are keen to go the extra mile now by participating in the show and showcasing their capabilities.
Of the 800 stalls in the refurbished Pragati Maidan, over 60% comprise ACMA members, which today stands at 815. It was this spirit of solidarity that acted as a catalyst in their participation, says an official.
Beyond the members, the list includes start-ups and players from the aftermarket — ACMA only entertains aftermarket players whose turnover is above INR 250 crore to ensure credibility in terms of trading turnover.
Space Constraints
ACMA, however, could not meet all participation requests for other reasons. For instance, the older halls are a kilometre apart with the construction work still in progress at the venue which means accessibility is a challenge. Two, the new halls are contemporary and the organisers do not want to be perceived as being partial to anyone, says Vinnie Mehta, Director General, ACMA.
This is particularly important for an industry in the throes of change and working on cutting-edge technology and ACMA naturally did not want to relegate them to older halls. Opening up membership to new segments, including electronics, IT, software, and parts related to the EV ecosystem, also meant the list was getting longer.
Pragati Maidan will see over 200 companies display more than 1,400 new products and technologies. There are six country pavilions: France, Germany, Japan, Poland, South Korea and the UK. In addition, delegates from 15 countries including Canada, Israel, Italy, Singapore, Switzerland, Thailand and the US, will participate in the show.
ACMA is also organising, for the first time, a Technovation Pavilion which is a global platform for new technologies and innovation. This will see 25 companies display products for e-mobility, plant automation, Industry 4.0 etc.
Concurrent Shows
There will also be a forum on the aftermarket, a day before the show begins. In addition, the ACMA Global Summit & Automotive Technology Partnership Summit & Expo will have its global peers, including VDA and SMMT, discuss possibilities of working together and also partnering with Indian component makers. About 30 players will be given complimentary travel and table space to showcase their technologies to potential partners.
Beyond this, ACMA IPO Forum, ACMA-AIWA Conference on Spare Service Support in a Changing Environment and SIAM Sourcing Group Forum are also planned. For the first time, the association will be hosting a summit on Stakeholders Consultation for the Phase-down of Hydrofluorocarbons. Organised along with the Ministry of Environment and Forest, this will be held in 32 locations across India following a mandate by the Centre to phase down hydrofluorocarbons.
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