At the 65th Annual Convention of the Automotive Component Manufacturers Association of India (ACMA), industry leaders emphasized the importance of balancing cost-efficiency with resilience and localisation in the face of evolving global challenges. With a strong push for advanced manufacturing technologies and local value addition, experts highlighted the need to develop robust global supply chains—even if it means incurring higher costs.
Speaking at the event, Vikram Kasbekar, Executive Director, Acting CEO, and CTO at Hero MotoCorp, noted that ongoing geopolitical tensions and trade pressures, such as U.S. tariffs, are reshaping the automotive landscape. “Companies must start adapting to disruptions by building complementary alliances,” he said, underlining the need for strategic collaboration to ensure long-term sustainability.
Piyush Arora emphasizes need for Agile and Resilient Supply Chains amid Global Disruptions
Addressing the growing fragmentation of global supply chains caused by protectionism, pandemics, and geopolitical conflicts, Piyush Arora, Managing Director and CEO of Volkswagen Group – India Region, stressed the urgent need for greater agility in the system. “Supply chains must evolve beyond cost efficiency to become agile, diversified, and resilient to disruptions,” he said, calling for stronger collaboration between OEMs and suppliers, along with faster product validation cycles.
The session also saw a strong emphasis on localisation, with the Make-in-India and Atmanirbhar Bharat initiatives taking center stage. Industry leaders advocated for accelerating localisation efforts, particularly in critical areas like semiconductors and electronics, to enhance self-reliance and long-term supply chain security.
Localisation and Semiconductor Resilience take center stage at ACMA 65th Annual Convention
Ganesh Mani, CEO of Switch Mobility and President & COO of Ashok Leyland, emphasized the urgent need for India to build end-to-end capabilities in key areas such as rare earth magnets, semiconductors, and electronics. “Localisation is going to be one very big initiative we need to address,” he noted, aligning with the broader vision of Atmanirbhar Bharat.
The ongoing semiconductor crunch remained a central theme. Lim Kenneth, Senior Vice President – Automotive Segment Asia Pacific at Infineon Technologies, highlighted the severe impact of chip shortages between 2020 and 2023, which resulted in a global production loss of 30 million vehicles worth $500 billion. “Resilience is not an option. It is a proactive approach to managing and mitigating risk,” he stated. Lim also shared that Infineon has committed $10 billion toward capacity expansion over the next decade, with OEMs co-investing to strengthen semiconductor supply chains and prevent future disruptions.
Balancing Efficiency and Resilience Key to Strengthening India’s Automotive Supply Chains
At the ACMA 65th Annual Convention, industry leaders underscored the growing need to balance efficiency with resilience in India’s automotive supply chains—while acknowledging the trade-offs involved.
Sriram Viji, Managing Director of Brakes India, cautioned that resilience comes at a cost. “Our industry is geared for efficiency, but resilience demands extra inventories, redundant capacity, and near-shoring. Who will bear that cost?” he questioned, subtly calling for government support to help shoulder the burden of building more robust supply networks.
On the technology front, Guruprasad Mudlapur, MD and President of Bosch Group – India, described the current moment as a historic turning point for the industry. “The auto industry is at a true inflection point—never before have technology transitions been this fast or disruptive,” he noted. Mudlapur shared that Bosch invests €6–8 billion annually in global R&D, including semiconductors, and has adopted vertical integration to secure its supply chain.
Akash Passey, President of ZF India, concluded the session by stressing the need to balance resilience with competitiveness. “The old model of super-optimised supply chains may no longer be viable. We must build in buffers and resilience while maintaining our competitive edge,” he said.
Despite concerns over rising costs, the panel agreed that India stands at a unique juncture—poised to become a resilient and globally competitive automotive supply chain hub, provided there is strong collaboration between industry and government on technology, localisation, and long-term strategy.
