(MENAFN- KNN India)
New Delhi, Sep 9 (KNN) Maruti Suzuki, India's largest carmaker by market share, has called on Electronics parts makers to proactively engage with India's burgeoning Semiconductor manufacturing sector.
This move, the company says, will ensure that chips required by the auto industry are developed and produced domestically, reducing dependency on global supply chains.
Speaking at the annual session of the Automotive Component Manufacturers Association (ACMA) on September 9, Hisashi Takeuchi, Maruti Suzuki's Managing Director and CEO, emphasised the need for early collaboration.
"By collaborating early and specifying our needs, we can ensure that the chips required by the industry are developed and produced locally, further reducing dependency on external sources," he said.
Takeuchi highlighted the potential for India to boost its auto component exports, noting that while the country exports 25 per cent of its auto production, this only accounts for 2 per cent of global auto industry trade.
"India is emerging as a global hub for auto component sourcing, exporting components worth USD 20 billion last year. However, there is significant room to grow and further increase exports," he stated.
The increasing reliance on electronics in the automotive sector has posed challenges for Indian manufacturers, particularly in producing cutting-edge products at affordable prices.
"The key lies in innovation-finding ways to integrate advanced features without compromising on cost-effectiveness," Takeuchi remarked.
The Maruti Suzuki CEO also urged manufacturers to embrace digitalization to boost productivity and quality, ensuring India can respond quickly to market demands.
He stressed the importance of partnerships between industry and academia to develop industry-ready professionals, particularly through the support of Industrial Training Institutes (ITIs).
Takeuchi's comments come as India's auto industry recovers from a semiconductor shortage in 2021-22, which led to delays of up to two years for some models.
In FY24, improved chip supply and strong economic growth helped maintain vehicle sales despite high commodity prices and rising vehicle costs, according to data from the Society of Indian Automobile Manufacturers (SIAM).
(KNN Bureau)
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