Vikrampati Singhania, MD of JK Fenner (India), assumed charge as president of the Automotive Component Manufacturers Association of India (ACMA) on Monday. In an interview with Outlook Business, he shares his outlook for the auto components industry and outlines the key priorities of his tenure. Edited excerpts:
Localization Isn’t About 100%, But About Competitiveness and Security: ACMA President
JK Fenner (India) MD Vikrampati Singhania terms the signing of global FTAs the biggest tailwinds for the auto components industry
ACMA President and JK Fenner (India) MD Vikrampati Singhania
Advertisement
Amid an uncertain geopolitical situation, what is the future outlook for the auto components industry?
The biggest tailwinds are the signing of global FTAs, which are opening up newer markets. We are also rebuilding relationships with the US. Supply chain challenges around certain raw materials remain, but the industry is actively looking at alternatives—lightweight materials, magnet-less motors, and recycling.
The Indian industry is globally competitive. Exports are a big agenda going forward, as is the localization of new technologies. With EVs and electronics coming in, there’s a whole set of new opportunities. On one side, we remain competitive in traditional products and can supply globally. On the other, we have to transition to newer technologies. As a nation, we are strong in software, and that opens another avenue.
To what extent localization is feasible?
It’s not about 100% localization. If some parts are made more efficiently elsewhere, imports are fine. But we must consider whether dependence compromises our national security.
That’s why semiconductor fabs are critical. Earlier, it was cheaper to import, but now it’s about risk mitigation and security. Initially, localization may not look competitive because scale is missing. But once scale builds, competitiveness follows.
Think of food security. It’s not just about cost but ensuring supply. The same applies to semiconductors and electronics, which are becoming core to every product. So, localization will focus on areas where strategic importance and competitive production align.
Advertisement
Are tier two and three suppliers ready for this transition, especially with EV technologies coming in?
It’s a gradual transition. Tier two and three suppliers have been competitive in traditional products, and ACMA has worked on cost efficiencies. Some are already adapting to new technologies, while others may struggle, but that’s natural in any industry’s evolution.
There’s also a long tail for internal combustion engines globally. These are large markets, and India serves them well. Our companies will continue to be globally competitive in IC engines while preparing for the shift to new technologies. This overlap will give us time to transition.
As ACMA president, what will be your biggest focus during your tenure?
It’s an honor and a responsibility to lead ACMA in such times. My focus will be to work with the industry and the government to sustain our growth agenda and deepen our role in global markets.
Key priorities will be helping the industry transition to new technologies and ensuring we remain competitive while working on sustainability. These will be the areas I intend to double down on during my tenure.
Advertisement
Show comments