Maruti Suzuki, India's largest carmaker by market share, is urging electronics parts manufacturers to engage more actively with India's growing semiconductor sector. This initiative aims to ensure that the chips essential for the automotive industry are developed and produced locally, thereby reducing dependence on international supply chains. Hisashi Takeuchi, Maruti Suzuki's Managing Director and CEO, emphasized the need for early collaboration to specify industry requirements and foster domestic chip production.

During the Automotive Component Manufacturers Association (ACMA) annual session on September 9, Takeuchi highlighted the opportunity for India to enhance its auto component exports. Although India exports 25 percent of its auto production, it only accounts for 2 percent of the global auto trade. He noted that India is becoming a global hub for auto components, exporting components worth USD 20 billion last year, with potential for further growth.

The CEO acknowledged the challenges faced by Indian manufacturers in producing advanced, cost-effective electronics for the automotive sector. He stressed the importance of innovation and digitalization to improve productivity and quality, as well as the need for partnerships between industry and academia to develop skilled professionals through Industrial Training Institutes (ITIs).

Takeuchi's remarks follow the recent semiconductor shortage that impacted the auto industry, causing delays of up to two years for some vehicle models. However, data from the Society of Indian Automobile Manufacturers (SIAM) indicates that vehicle sales in FY24 have been stable, supported by better chip supply and robust economic growth despite high commodity prices and rising vehicle costs.