Auto component makers eyeing Russia
New Delhi, May 20. ENCOURAGED by the growing competitiveness of the Indian automotive component sector, automotive
component manufacturers, under the aegis of the Automotive Component Manufacturers Association of India (ACMA), are now
looking at exploring new market opportunities in Russia.
According to ACMA, Russia represents a fast-growing market for automotive products and is likely to become one of the
world's largest automotive markets in the next 15 to 20 years. In fact, a recent Goldman Sachs report has said that
Russia, India, Brazil and China would constitute the centre of gravity of world trade by 2020. This is expected to open
up vast areas of opportunities for Indian and Russian automotive component manufacturers in the area of joint-ventures,
partnerships and building of close business linkages.
Major Russian vehicle manufacturers such as KAMAZ, Lada and GAZ have shown keen interest in sourcing automotive
components from India and also in catalysing JVs and technology tie-ups in component manufacturing activity.
In fact, a senior purchase delegation from KAMAZ had visited the Auto Expo held in January this year and had made a
preliminary assessment of the Indian suppliers and their capability to supply to the heavy commercial vehicle industry
in Russia.
Subsequently, KAMAZ has invited ACMA to visit Russia and hold discussions on outsourcing possibilities.
In response, a 25-member delegation from ACMA, led by its President, Mr K.V. Shetty, will be visiting Russia next
week. This mission is being organised by ACMA in close association with the newly established Confederation of Indian
Industry (CII) office in Moscow and with the Indian embassy in Russia.
The delegation is scheduled to meet KAMAZ, Lada, GAZ and ZIL, who are some of the foremost commercial vehicle and
passenger car manufacturers in Russia, and also their local component suppliers.
CEOs from 24 leading auto component manufacturers from India will be participating in this ACMA mission.
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