Dr Pawan Goenka, Chairman of SCALE and Chairman of IN-SPACe, Department of Space, Government of India, set an ambitious tone for the 64th Annual Session of the Automotive Component Manufacturers Association of India (ACMA), centered on the theme ‘Viksit Bharat - Fostering Self-Reliance & Global Competitiveness in Mobility Components.’
Goenka’s call to action underscores a bold vision for positioning India as a global leader in automotive manufacturing. The government has set an ambitious target of achieving a $32 trillion GDP by 2047, in time for India’s centenary of independence. In his address, he energised the audience with a compelling vision, supported by insightful calculations. He highlighted that 25% of this projected GDP could realistically stem from manufacturing, with the automotive sector expected to contribute a significant 20% of that figure. This would equate to an impressive $1.6 trillion contribution from the auto industry alone.
Goenka framed this target not as an aspiration, but as an attainable goal, urging industry leaders to embrace the opportunity. According to him, achieving this milestone is well within reach. “The power of compounding will play a crucial role,” he reiterated, emphasising that all it takes is an 11% nominal growth in top-line revenue, measured in dollar terms.
He supported his arguments mathematically. Over the past 23 years, the auto industry has experienced an impressive 17% compound annual growth rate (CAGR). If the sector continues this trajectory for the next 23 years, it could reach a staggering $5.3 trillion in turnover. However, as he pointed out, the industry only needs to contribute $1.6 trillion to support India's goal of achieving a $32 trillion GDP by 2047.
Looking at the domestic market, Goenka suggested that an 8% growth rate—consistent with the last 23 years—is an aggressive yet reasonable target. This would bring the domestic auto industry to approximately $700 billion by 2047. The remaining $900 billion, (with $500 billion from components and $400 billion from OEMs), would need to come from exports. If the industry can achieve $100 billion in exports by 2030, it would require just a 10% CAGR. Beyond that, the power of compounding would push export revenues to the $500 billion mark, he explained.
For vehicles, reaching 40% in export volume would help drive this growth, enabling the industry to hit $100 billion in export revenue. Goenka emphasised that the supplier community has evolved significantly in terms of quality and technology, making it entirely feasible for the auto component industry to play a pivotal role in this overall growth journey, he added.
Right through, the Annual Session marked a notable shift in tone from the country's key ministers, signaling a more collaborative approach to supporting the auto component industry. Unlike past instances where they subtly applied pressure on industry leaders, this session saw the four attending ministers—H D Kumaraswamy, Minister of Heavy Industries; Nitin Gadkari, Minister of Road Transport & Highways; Piyush Goyal, Minister of Commerce & Industry; and Jitin Prasada, Minister of State for Commerce & Industry and Electronics & Information Technology—offer their unequivocal and unconditional support.
Their collective stance highlighted a departure from the confrontational strategies of the past, setting a new tone of cooperation. This shift reflects the government's recognition of the auto component industry's critical role in the nation's economic growth and global competitiveness, and their commitment to fostering an environment that encourages innovation, investment, and sustainability.
One of the notable programme at the event was the launch of ACMA Mobility Foundation, aimed at integrating stakeholders from the software, electronics, and startup sectors to foster innovation and collaboration in the automotive industry.
Shradha Suri Marwah, ACMA President and Chairperson & Managing Director of Subros, described the current moment as a pivotal one for India, signifying both remarkable progress and immense opportunity for the automotive sector. She highlighted the launch of the ACMA Mobility Foundation on World EV Day as a key milestone, highlighting the industry's commitment to embracing future-ready mobility solutions.
In addition, a joint report by ACMA and McKinsey, titled ‘Scaling Global Competitiveness and Self-Reliance was also released.
Sanjiv Puri, President, CII & Managing Director, ITC, highlighted theimportance of skilling, innovation and sustainability while Hisashi Takeuchi, MD & CEO, Maruti Suzuki India, stressed that the components makers to look at offering advanced tech features at affordable price, support local manufacturing of semiconductors, adopt digitalisation and automation, enhance manufacturing skills and compete at the global stage with new technologies. “It is upto us to leverage these emerging opportunities,” he said.
Gadkari, acknowledging that road engineering remains the weakest link within his ministry, called upon industry leaders to take an active role in educating the public on road safety.
Meanwhile, Piyush Goel emphasised the importance of setting intermediary milestones on the path to achieving the ambitious 2047 target. “While the long-term goal is essential, having interim checkpoints ensures steady progress,” he noted. Goel further inspired the audience, asserting that 'no one in the world can compete with the Indian auto component industry.' He urged industry players to make this the defining success story of the decade, setting the stage for India's global leadership in the sector.
The event also celebrated industry excellence with the presentation of two prestigious awards: the Quality Circle Competition Award and the newly introduced Gender Diversity Award.
Team ‘Strategic Squad’ from ZF Rane Automotive India Pvt. Ltd., Trichy, won the 19th ACMA National Quality Circle Competition, showcasing their dedication to quality and innovation. Meanwhile, Team ‘Infinity’ from RSB Transmissions (I) Ltd., Jamshedpur, was honoured with the Gender Diversity Award.
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