SIAM Prez Urges Auto Firms Moving Out Of China To Invest In India

New Delhi, Sep 5: The newly elected president of Society of Indian Automobile Manufacturers (SIAM), Kenichi Ayukawa Saturday urged automobile and components selling companies in China, relocating plants in other countries, to bring investments or partners with companies in India.

“Companies in China are relocating or putting plants in other countries to cover geopolitical risks and the auto and components sector must bring those investments or tie-up with them to produce in India,” Ayukawa said.

Ayukawa, who is also the MD and CEO of Maruti Suzuki India, was speaking at the annual session organised by Auto Components Manufacturers Association of India (ACMA). He ensured to make efforts to explore business meetings with the manufacturers of Japan to push the “Make in India”.

Such similar steps could also be taken up with South Korea, USA and European countries, he said while asking components makers to go for "maximum localisation of inner parts and raw material in line with 'Aatmanirbhar Bharat' or self-reliant India drive.

"There is opportunity in adversity. Many companies in China are relocating or putting plants in other countries to cover geopolitical risk. We should bring those investments to India or tie up with them to produce in India," Ayukawa said.

“There are challenges,” he said, adding that the auto components industry must increase production while taking care of employees' health and safety in these challenging times. “"it needs a good amount of top management monitoring and detailing.”

According to Ayukawa, SIAM sourcing group has identified electronics, grades of steel, tooling and electric vehicles as four categories of components where imports should be converted to local. 

"We would request you (component makers) to take leadership and assume responsibility for localisation of these components. If we are able to achieve this, India will become in a powerful position to export auto components. If you can produce ventilators and PPE in two months, I am confident you can achieve auto component localisation also," Ayukawa said.

Further, he sought government support to bring production-linked incentive schemes for exports in the auto sector, GST reduction, and scrap the incentive scheme for domestic demand.