US auto makers show interest in Rajkot made parts

US-based auto makers, particularly heavy vehicle manufacturers has shown interest to import auto components from Rajkot after a delegation from the Rajkot Engineering Association (REA) participated in an auto exhibition in Las Vegas last month.

A delegation led by Gokul Sagpariya, president of REA had visited the US to participate in Automotive After Market Products Expo (AAPEX & SEMI show 2013) organized by in Automotive After Market Industries Association (AAIA) in November.

Gokul Sagpariya said, "Till date, export to the US from Rajkot was very nominal but after this meeting we believe that heavy vehicles manufacturers of America may come here to do business with us." Rajkot based auto parts makers at present export to Middle East, Germany, France, Italy and some other European and Gulf countries.

According to industry sources, export share in overall business is less than 10 per cent. Owing to price competitiveness, in the last five years the industry has been maintained growth rate of around 25-30 per cent.

The REA delegation had held a meeting with Speciality Equipment Market Association (SEMA) officials, a trade association in the US that consists of manufacturers, distributors and retailers.

"We have met a SEMA official in this exhibition and discussed about auto parts industry of Rajkot. The response was positive and we are hopeful that it may open new market for not only Rajkot but for Indian auto components manufacturers", said Sagpariya.

Rajkot has more than 500 auto component manufacturers, of which around 50 are suppliers to original equipment manufacturers (OEMs) and rest are SMEs that supply to the retail market.

The industry in Rajkot produces more than 300 types of parts for the automobile industry and employs about 10,000 people.

So far companies like Tata Motors, Mahindra & Mahindra, Ford India, Hyundai Motors India, Ashok Leyland, Honda Cars India, Hero Motors and several others are purchasing parts from Rajkot.