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ACMA Automechanika New Delhi 2019 steers the wheels towards shifting aftermarket dynamics

1 Apr 2019

ACMA Automechanika New Delhi concluded on 17 February following four successful days of product unveilings, business dialogs, trend debates and quality networking. The event drew 515 exhibitors from 16 countries and 13,267 visitors from 42 countries – establishing its internationality once again.

Shaping the future of vehicle repairs, ACMA Automechanika New Delhi brought new innovations under the segments of parts, components, repair and maintenance. Sharing stage spread across 20,033 sqms were market leaders AC Delco India, Bosch Ltd, Delphi Automotive Systems, Mansons International Pvt Ltd, Minda Distribution and Services Ltd (MDSL), ZF India. For the first time, the platform saw car digital solutions with companies like Air International - TTR Thermal System Pvt Ltd, SpareFit by CloudSteer Technology Pvt Ltd, Vision Embesoft Solution

Intech DMLS Pvt Ltd, IP Softcom (India) Pvt Ltd showcasing developments in this arena. Overall, the innovations at the 4th edition steered the direction in which the Indian automotive industry will be moving in the coming months.

Commenting on the aftermarket in India, Mr Ram Venkatramani, President, ACMA said: "The aftermarket in India is today a USD 9.2 billion market and growing. Mandating standards for parts sold in the aftermarket will help the market evolve better. Further, with growing technological complexities in the vehicles, our technicians and mechanics will need to be suitably up-skilled to ensure better service and customer satisfaction."   

Mr. Olaf Musshof, Director, Automechanika Frankfurt, Messe Frankfurt Exhibition GmbH shared: “The automotive industry is witnessing changing trends worldwide with some markets driving big push towards electric vehicles and hybrids. The shifting dynamics are going to affect the automotive aftermarket globally and Brand Automechanika reflects these advancements at the domestic shows.”

Participating since the early editions of ACMA Automechanika New Delhi in 2013, ZF introduced its new product ‘ZF Car Connect’ that offers telematic solutions for passenger car fleets this year. Mr Vijay D. Khorgade, General Manager, Head – ZF Aftermarket India shared: “One of the key trends in independent aftermarket is electrification. At ZF, we foresee 30% of the global vehicle production to be equipped with fuel electric or hybrid electric by 2020. Electric motors also need different competency. So it’s time we really prepare and equip our workshops to handle such repairs. This is just a preview of what’s coming next.”

Augmented reality based training concept for car repairs by Bosch, Rivets & Riveting Systems introduced by Silkaans which replaces the traditional chisel and hammer method for repairs and a one-of-a-kind IONSTAR anti-static pistol for painting workshops or body shops that requires no power supply via cable, no batteries or battery packs by Herrmann-Lack-Technik GmbH were some of notable products and highlights of what’s next for the industry.  

While 54% exhibitors were Indian, 46% of exhibitors at this year’s fair came from 15 different countries competing and aligning their product offerings to the domestic market demands. Prominent Japanese brand known for its racing clutches, Exedy was one such exhibitor and also a first time participant at the fair. Mr Awanish Kumar Gupta, Manager – Sales & Marketing, Exedy India Ltd shared the brand’s growing business-intent on the tractor segment which has a huge demand in India: “In India, one of our key focus areas is the tractor segment and we have noticed many domestic companies suppliers showing interest for dealerships. An added advantage was that we also met buyers from neighbouring countries who are completely new contacts for us. It has been a worthwhile experience and we are already considering our participation for the next edition.”

This year's edition surpassed participation, business engagement and foot-fall, compared to the last one, signifying potential growth of aftermarket in the country. Further the significant traction in the ACMA Safer Drives Pavilion is reflective of the growing consciousness in common man towards usage of genuine components for preventing road accidents” stated Vinnie Mehta, Director General, ACMA.

While international brands seem to be vying for the Indian market, Indian brands were gaining attention with IPOs and foreign buyers because of the superior product quality and new features. Mr Stuart Charity, Executive Director, Australian Automotive Aftermarket Association (AAAA) shared: “I had a number of reasons to visit the trade fair this year with one of the key objectives being identifying quality Indian suppliers to sell products in Australian markets. There is a real opportunity for Indian companies in international automotive aftermarket and it’s time for suppliers to take the next step. I have been to a number of trade shows globally and must say that ACMA Automechanika New Delhi is right up there in terms of number of exhibitors, quality product offerings and visitor footfall. I will definitely be planning to come down again in two years’ time and might look at bringing a delegation of Australian buyers as part of my objective has been achieved here.” 

Mr Michael Dehn, General Manager, Sales & Marketing, Messe Frankfurt Trade Fairs India said: “The global economy and in particular, established trading routes are experiencing major changes. ACMA Automechanika New Delhi also benefitted from an increased presence of American and European buyers who are noticing the improved pricing and quality that the Indian automotive industry has to offer.”

With car customisation being another key trend among the end consumers, accessories and aftermarket products which were earlier exported are now being made readily available with domestic suppliers and domestic manufacturers coming together. Mr S.K. Mahindru, Sr VP, Maruti Suzuki shared: “I love to visit ACMA Automechanika New Delhi because you end up meeting tier I, II, III suppliers under one roof. Happy to see that some of the technologies and accessories that were exported earlier are now being localised. I saw some new innovations in accessories here which has potential. We have had discussions with those suppliers and will proceed further soon.”

Fuelled by increasing attendance of decision makers, the strong footfall came together with exhibitor reports of prospective partnerships and joint ventures. First time visitor at ACMA Automechanika New Delhi, Mr Manpreet Singh Sethi, Director, Davi Engineering Pvt Ltd (Pune) shared: “We are a manufacturer of parts for transmission and my main objective to visit was to study what other companies are doing in this filed and if we can do a joint venture with them. I found good forging suppliers and companies like JVR and would like to explore partnership opportunities in the near future.”

One of the distinguishing factors this year was the fair’s emphasis on creating a digital roadmap for both auto component and aftermarket players to cater to the emerging needs of next generation automobiles. Multiple seminars were organised by Messe Frankfurt Trade Fairs India and AMCA which brought International Purchasing Office (IPOs) Forum and thought-leaders on stage for trend debates. Mr. Siva Arvinth, President and Business Head - Aftermarket, Spark Minda, Ashok Minda Group: “I was sharing the dais with auto industry veterans and it was an interactive dialog on the change of emissions from BS IV to BS VI whereas the discussion on road safety norms was an eye opener. It was a good learning experience for me and I definitely have a lot of key things to take back.”

Citing the example of Government of Punjab which has put major thrust on E- vehicles, Mr Abhishek Narang, Additional CEO, Punjab bureau of Investment Promotion confirmed to have connected with auto component industry to take discussions forward. He shared: “E- vehicles is the major thrust sector of the government of Punjab as per the industrial policy of 2017 and there are various incentives that are available to the industrial units in Punjab which includes GST reimbursements up to 200% of FCI for 15 years for anchor units, employee subsidy up to INR 48000 PA for five years. Apart from that we also give exemption in electricity duty, stamp duty etc. We met few people who have shown interest in investing in Punjab.”

Concluding the sessions, Mr Rakesh Kher, President, Minda Distribution & Services Ltd shared: “Industry 4.0 powered smart factories are going to roll out customised solutions at the lesser cost and that will help us in being competitive in the aftermarket. Participants will definitely benefit from the extensive sharing of experience of some of the automotive leaders.”

Recognised as one of the most influential events for the aftermarket business globally, ACMA Automechanika New Delhi is one of 17 Automechanika fairs held across Africa, Asia, Europe and the Americas. The next Indian edition will take place in February 2021.

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Background information on Messe Frankfurt

Messe Frankfurt is the world’s largest trade fair, congress and event organiser with its own exhibition grounds. With more than 2,500* employees at 30 locations, the company generates annual sales of around €715* million. Thanks to its far-reaching ties with the relevant sectors and to its international sales network, the Group looks after the business interests of its customers effectively. A comprehensive range of services – both onsite and online – ensures that customers worldwide enjoy consistently high quality and flexibility when planning, organising and running their events. The wide range of services includes renting exhibition grounds, trade fair construction and marketing, personnel and food services. With its headquarters in Frankfurt am Main, the company is owned by the City of Frankfurt (60 percent) and the State of Hesse (40 percent).

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*preliminary figures 2018

Background information on Automotive Component Manufacturers Association of India (ACMA)

The Automotive Component Manufacturers Association of India (ACMA) is the apex body representing the interest of the Indian Auto Component Industry. Its active involvement in trade promotion, technology up-gradation, quality enhancement and collection & dissemination of information has made it a vital catalyst for this industry’s development. ACMA’s charter is to develop a globally competitive Indian auto component Industry and strengthen its role in national economic development as also promote business through international alliances. ACMA is an ISO 9001:2008 certified Association.