New Delhi: Auto industry body SIAM Thursday sought government support for localisation of electronic components, specially semiconductors, which is currently facing a global shortage, stating it would need huge investments.
Society of Indian Automobile Manufacturers (SIAM) President Kenichi Ayukawa, while speaking at an event organised by the Automotive Components Manufacturers Association of India (ACMA) said the two industry bodies are working together on a road map for self-reliance for more localisation of components.
“Together we have identified specific areas of engine transmission, electrical tooling, (special) grade of steel etc. That have good scope for localisation,” he said.
Ayukawa further said, “For electronics areas, especially for semiconductor parts, government support is required for localisation as it needs huge investments. Auto demand alone is not enough for localisation in electronics.”
The shortage of semiconductors globally due to a spike in demand from the consumer electronics industry during the COVID-19 lockdowns has impacted automobile manufacturers in India as well.
Mahindra & Mahindra has already stated that its passenger vehicle production has been impacted by the supply constraints, while others like Tata Motors and Maruti Suzuki are also keeping a close watch on the development.
Semiconductors have become a crucial part in modern cars with increased electronic components and connectivity features.
Commenting on the recovery in the automobile industry from the coronavirus pandemic induced disruptions, Ayukawa, who is also the Managing Director and CEO of Maruti Suzuki India, said, “While we are seeing recovery in some segments, on the business front the situation continues to be challenging.”
Stressing the point, Ayukawa said, “For the first 10 months of this fiscal, the April-January period, domestic sales are lower than what they were six years ago in cars, seven years ago in two-wheelers.”
For commercial vehicles and three-wheelers also the sales are behind by many years, he added.
“So, to fully overcome this situation, component makers and OEM need to work more closely than ever before. The automotive industry needs to demonstrate greater focus on quality, R&D and maximise localisation,” he asserted.
Ayukawa said in order to meet latest safety and emission norms, import of auto components have increased but the industry is working to enhance the localisation levels again.
PTI
