The sentiments were high for stakeholders in the automotive aftermarket business in India, with the opening of the third edition of ACMA Automechanika New Delhi on March 21 at Pragati Maidan in the national capital. Touted as the most vibrant automotive fair exclusively for the aftermarket sector in India, ACMA Automechanika has carved out its own glow and command as one of the most sought-after business platforms in South Asia, with a wide range of participants including leading suppliers, tier 2 and small component makers as exhibitors, professionals from the industry and academia, dealers, mechanics, etc. Automechanika, the world’s biggest aftermarket trade fair brand, with shows across the globe at various automotive hotspots, puts India on the global map of manufacturing and innovation in the aftermarket field.
The show this year stood at 19,500 square meters (up from 16,000 sq. m last edition) marked by 25 percent increase in exhibition space, with a hike in exhibitors by 28 percent. This includes over 550 exhibitors hailing from as much as 17 countries including USA, Germany, United Kingdom, China, Italy, Japan, Poland, Russia, Singapore, Indonesia, Korea, Taiwan, etc. The trade fair comprehensively covers the aftermarket segment put together in six broad categories, including Parts and Components, Electronics and Systems, Accessories and Customizing, Repair and maintenance, Management and Digital Solutions, and Car Care and reconditioning. Some of the leading brands who exhibited their world-class products at the show includes Schaeffler Group, ZF India, Valeo India, Mansons International, ACDelco, Elofic, Ample Autotech, etc.
The floors of the trade fair saw some tight packed business in all the four days with product campaigns by exhibitors, conferences and panel discussions on industry relevant themes, and media briefing by industry scions and decision makers. “It is a showcase of our industry’s prowess. It allows international players to source the best of Indian aftermarket products and technologies besides creating opportunities for business alliances”, said Mr. Rattan Kapur, ACMA President. “Since its debut in 2013 ACMA Automechanika New Delhi has grown constantly in both quantity and quality, with over 550 exhibitors across six international pavilions. This shows the great potential of the Indian automotive market and the international interest in it”, exclaimed Mr. Michael Johannes, Vice President, Brand Management Automechanika, Messe Frankfurt.
Reading the trade fair with some relevant statistics, “the Indian automotive aftermarket stood at INR. 56,098 Crore (USD 8.4 billion) in 2016-17 with a total vehicle population of 228.7 million across the country. The Indian automotive aftermarket is expected to reach INR. 75,705 Crore (USD 13 billion) by 2019-20 exhibiting a CAGR of 10.5%”, said Mr. Vinnie Mehta, Director General, ACMA. The component manufacturing in India, powered by en number of small players amid giants, is also set to achieve new benchmarks and build global footprints in the next decade, with the establishment of the Indian region as a global manufacturing hub. In this context, international trade shows like ACMA Automechanika act as springboards for the domestic market and industry by providing opportunities and enabling exchange of technical expertise and exchange. This can also give required attention to India’s Automotive Mission Plan (AMP) 2026.
Moreover, both ACMA and Messe Frankfurt aim to engender some structural change among the industry stakeholders by pushing for standardization and IP with world-class quality products, also addressing the menace of counterfeit products and vehicle safety in the country.
‘ACMA Safer Drives’ pavilion bats for genuine auto parts
As part of its larger campaign on road safety ‘Safer Drives’ started early this year, ACMA had an exclusive kiosk at the Automechanika to sensitize the public on using genuine auto parts and its direct correlation to increased vehicular safety and road safety on the whole. Blending the leading campaigns of ‘ACMA Asli-Naqli’ and ‘Messe Frankfurt against Copying’, the Safer Drives pavilion showcased some of the standardized and genuine spare parts that enhance vehicular safety, including the products of the campaign partners Hella India Lighting, UNO Minda, Federal Mogul Motorparts, etc. The campaign also pushed for absolute compliance of road safety rules by the road users.
Briefing the media, Mr. Rama Shankar Pandey, Managing Director, Hella India Lighting, said that the Safer Drives initiative by ACMA was a part of the industry’s efforts towards eliminating the use of sub-standard and counterfeit products which lead to road accidents and loss of lives, either directly or indirectly. “Lack of safety standards in the country and high price margins relative to the genuine parts makes it hard to check their prevalence”, he added.
Preparing the automotive aftermarket for Cyber Economy: Thinking ‘Digital’ Pays!
On the sidelines of the exhibition, ACMA had organized a series of panel discussions on ‘National Seminar on Preparing Aftermarket for the Digital Economy’, zooming into the new avenues and opportunities for the industry under the Union government’s ‘Digital India’ campaign. The key focus areas of the discussion included the scope of e-retailing in the auto components value chain and new business models for companies in the age of connected vehicles and digitally-empowered consumer base.
“The government is envisaging a Digital India and cashless society where new modes of digital transactions will play a crucial role in supporting and expanding the business of manufacturers, distributers, and retailers in a value-chain”, said Mr. Sanjay Kumar Rakesh, Joint Secretary, Digital Payments, Ministry of Electronics and IT. Observing the nascent stage of e-commerce in the auto parts sector, Mr. Rattan Kapur, ACMA President, said that there are huge opportunities in the B2B and B2C space in this regard. He also predicted a CAGR of 7 per cent for online aftermarket sales, accounting for USD 150 million by 2020, up from a mere USD 20 million in 2014. Mr. S. Muralidharan, President, Lucas Indian Service, said that the transformation of businesses from analogue to digital means, however disruptive, brings new streams of revenue and productivity enhancement for companies.
Drawing attention to the importance of leveraging ‘data’, Mr. Sriman Kota of IBM saw a vehicle as an ‘economic unit’ by itself, coupled with online engagement with the customer through portal platforms or the vehicle itself using connected technologies. Mr. Tanmay Shah of Amazon shared his company’s successful venture into auto spares e-commerce in India, amid the rapid pace of online marketing in every other sector. He identified comprehensive technical database, product availability, and genuineness as key factors for selling auto components online.
Noting that lack of technical skills to fix auto spares and accessories on their own by common customers inhibit online sales, Mr. Sunil Dhingra, CEO of Jazzmyride.com, said that consumers always appreciate allied services of garage or mechanic options that are more transparent and cost-effective than regular service centers. On a similar note, Mr. Rama Shankar Pandey, Managing Director, Hella India Lighting Ltd, observed that the whole e-commerce ecosystem expands consumer experience with clarity and transparency in the entire business.
Automotive Engineering Show: Bringing synergy to the trade floor
Alongside ACMA Automechanika at Pragati Maidan, the Automotive Engineering Show (AES), India’s only trade fair focused on technologies for automotive manufacturing, showcased latest technologies and products for vehicle and auto-component manufacturing industries. The show witnessed the presence of key brands like Banner Engineering India, Micro-Epsilon India, Dow Corning India, Leuze Electronic, Faro Business Technologies India, SAP partner Cogniscient Business Solutions, and many more. Apart from new technologies, the show included the aspects of design and product development, along with testing and measurement segments as well.
Speaking on the importance of the event, Mr. Raj Manek, Executive Director and Board Member of Messe Frankfurt Asia Holding Ltd, said having the Automechanika and AES on a single platform will bring synergies among auto, component and aftermarket players, enabling them to collaborate and exchange technical know-how at the show floor.
Chinese suppliers flock the fair
The overwhelming presence of medium and small-scale players in the automotive component and aftermarket industry from China at the ACMA Automechanika, for a moment, made us to think that we were in some trade fair at Guangzhou! A majority of them tier 2 and tier 3 suppliers, they covered a wide range of products in every vehicular segments, including technology-intensive components like ABS and EBD, fuel-injection systems, etc. There were a couple of EV companies as well, showcasing their products from the world’s largest automobile market. Star attraction among them was the Jiangsu Kawei Auto, the only vehicle OEM at the show. It displayed its popular twin-cab pickup truck, along with an all-electric plug-in SUV.
The Chinese exhibitors did have a popular fan base, primarily independent dealers and mechanics from across the country. Mr. Nagarajan, a diesel fuel-pump dealer hailing from Tiruchirappalli in Tamil Nadu, said that he was visiting the show only for Chinese products, especially common-rail direct injection related products for commercial vehicles. He added that some of the Chinese products are good in quality and longevity, for almost half the price of the OEM-certified products in India.
By Dhiyanesh Ravichandran & N. Balasubramanian