Society of Indian Automobile Manufacturers (SIAM) hosted the Automotive Sourcing Conclave 2024 in New Delhi, focusing on the theme “Towards Building a Resilient Supply Chain.” The discussions emphasised the need for robust and sustainable supply chains to propel the industry forward and align with India’s self-reliance ambitions under the Aatmanirbhar Bharat initiative.
The conclave featured three thematic sessions addressing critical areas: “Strengthening the Supply Chain Ecosystem for Electrified Vehicles,” “Preparedness for Futuristic Technologies,” and “Balancing Regulatory Compliance vis-a-vis Supply Chain Resilience.” These sessions examined innovative approaches to enhance supply chains for electric vehicles (EVs), integrate emerging technologies, and align regulatory compliance with operational efficiency.
Dr Hanif Qureshi, Additional Secretary at the Ministry of Heavy Industries, highlighted the government’s efforts to localise production and reduce import dependency through schemes such as PM eDRIVE and FAME. He revealed that INR 18,000 crore had been invested in localisation initiatives, with a revised list of critical components under preparation. The aim is to ensure that the evolving supply chain meets India’s increasing demand for EVs while reducing reliance on imports.
The importance of MSMEs and local vendors in supply chain resilience was emphasised by Vimal Anand, Joint Secretary at the Ministry of Commerce. He stressed the role of cutting-edge home-grown technologies in driving localisation and enhancing India’s competitive edge. The government’s commitment to fostering collaboration with the industry to address supply chain challenges was also reaffirmed.
Vinod Aggarwal, Immediate Past President of SIAM and Managing Director of Volvo Eicher Commercial Vehicles Ltd, elaborated on the industry’s progress towards reducing import dependency by INR 25,000 crore over five years. He credited the Production Linked Incentive (PLI) schemes for bolstering localisation and competitiveness. SIAM, in collaboration with the Automotive Component Manufacturers Association of India (ACMA), submitted a list of 50 critical components for local sourcing to advance this agenda.
Highlighting the achievements of the auto component sector, ACMA President Shradha Suri Marwah noted that the industry recorded a turnover of $74 billion in FY2024, with domestic sales to OEMs accounting for $63 billion. She emphasised the collaborative efforts of stakeholders in driving localisation, especially in the context of increasing electronic content in vehicles.
SIAM’s Aatmanirbhar Bharat Sourcing Group Chairman, Sunil Kakkar of Maruti Suzuki India Ltd, underscored the sector’s contribution of 35% to India’s manufacturing GDP, producing 2.8 crore vehicles annually. He applauded the industry’s success in surpassing its import reduction target, achieving a net reduction of INR 7,000 crore.
Speakers such as Sachin Kulkarni from Skoda Auto Volkswagen India and representatives from leading companies like Amararaja Advanced Cell Technologies and JSW MG Motors offered insights into enhancing sustainability and innovation in supply chains. They stressed the importance of alternative powertrains and environmentally responsible practices to meet quality standards and reduce oil imports.
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