India is on the growth path: Klaus Bräunig, VDA Managing Director

It was the seventh time that VDA initiated a German pavilion at Auto Expo in New Delhi with the slogan “Made in Germany.” The pavilion was supported through the official foreign trade show program by the German Federal Ministry for Economic Affairs and Energy and AUMA, the Association of the German Trade Fair Industry.

Mr. Klaus Bräunig, Managing Director, German Association of the Automotive Industry (VDA), addressing the media at the German Pavilion at Auto Expo 2018 Components. To his right is Dr. Martin Ney, German Ambassador to India

This was stated by Mr. Klaus Bräunig, Managing Director, German Association of the Automotive Industry (VDA), while addressing a press conference along with the German Ambassador to India, Dr. Martin Ney, at the German Pavilion at Auto Expo 2018 Components. VDA was representing the official participation of suppliers, promoted by the German Government under the slogan “Made in Germany.”

Commenting on the growing interest of German companies in India, Mr. Braunig said: “India is on the growth path. With the growing GDP and industrial production, combined with the falling inflation rate, there is a considerable potential in this large country with just over 1.3 billion people. The population is young – more than half of all Indian citizens (54 per cent) are under 30, and only 6 per cent are over the age of 64. The per capita gross domestic product has also shown a positive trend during recent years, with annual increases of between 6 and 7 per cent”.

A strong representation of the German automotive industry with major suppliers alongwith new-comers could be seen at the Expo which was supported by the Federal Government and the Indo-German Chamber of Commerce (IGCC).

Mr. Braunig observed: “We are proud of our close co-operation and of the fact that we take part in each other’s motor shows. For example, the Automotive Component Manufacturers Association of India (ACMA) will again have an Indian pavilion at the IAA Commercial Vehicles in Hannover in September. On the official German pavilion, which is promoted by the German Government, we have 10 suppliers. Then there are also about 20 more German suppliers here, some of whom are exhibiting at Auto Expo with their Indian subsidiaries and partners. German passenger car makers are also exhibiting at “Auto Expo 2018 – The Motor Show” that is taking place almost simultaneously in Noida.”

It may be recalled that recently VDA initiated a new activity that encouraged the development of Indo-German relations. Confirming this, he said: “Since last year, with the support from the German Federal Ministry for Economic Cooperation and Development (BMZ), we have managed to launch an association partnership program among ACMA, SIAM and VDA. At the heart of this partnership are further steps to even closer co-operation in different areas of mutual interest, such as climate protection policy, quality management, and trade shows. A firmly established event in Germany is the ‘IAA India Day’ that is held regularly at IAA with the participation of our Indian partners ACMA and SIAM and IGCC. This year too, we would like to invite you to the IAA – the leading international trade show organized by VDA. In 2018 it is the IAA Commercial Vehicles, and it will take place in Hannover from September 20 to 27.”

The potential of mutual trade is not exhausted. Direct investments and free trade are the two sides of the same coin, and a new attempt is needed to reach a free trade agreement with the EU.

“Last year (January to November), German suppliers delivered parts and components worth 514 million euros to the Indian market. In return, Indian suppliers exported parts worth 205 million euros from India to Germany. If we look at the Indo-German automotive trade in its entirety – that is, taking vehicles and motor-vehicle parts together – we find that Germany has a trade surplus of around 234 million euros (from January to November 2017)”, Mr. Braunig added.