Indian vehicle parts suppliers on South African mission

Business Live - Indian vehicle parts suppliers have thrown down the gauntlet to their South African counterparts, urging them to co-operate with Indian companies.

This comes after a 12-member delegation from Automotive Component Manufacturers Association of India (ACMA), representing 600 companies, on Monday embarked on a week-long mission in SA to assess the potential for developing business relationships with local component manufacturers.

Component exports from India to Africa stand at 7.4%.

While this is ACMA's first mission to SA, it has embarked on similar initiatives in countries like Turkey and Russia.

At the dinner for local car manufacturers and other industry players in SA late on Monday, Sanjay Labroo, the chairman of ACMA who is leading the Indian delegation, said they had come to SA with an "open mind" and sought to explore investment, joint venture and trade opportunities.

ACMA's approach marks a significant shift in business relations between parties from different countries.

Chinese companies tend to concentrate on selling components to foreign markets. By contrast, Indian suppliers are seeking co-operative relationships, including exchange of technologies and joint ventures.

Major component exports from India to SA involve filter, flywheel, combustion piston, bearing, gears, connector terminals and wire harness.

And major parts imports from SA to India include roll bearing, roller assemblies, internal combustion engine, bumper and gasket.

Labroo said both Indian and South African companies could learn from each other and co-operate.

At this stage, he said the delegation aimed to study the South African automotive component industry.

On Monday, the delegation met National Association of Automobile Manufacturers of SA (Naamsa), which represents local vehicle manufacturers, and National Association of Automotive Component and Allied Manufacturers (Naacam), whose members include domestic parts suppliers.

"We got an excellent overview of the macro situation," Labroo said.

From today until Friday, the delegation would meet individual companies from parts manufacturers, vehicle makers and dealers.

By end of the week the delegation would have a "full micro" picture of the local component industry.

Stewart Jennings, president of Naacam, said the association was very excited about ACMA's move.

"We can learn from them; they can learn from us," Jennings said.

He said ACMA had made the first step and now the parties had to build on the relationship. "It is about looking for opportunities," he added.