The auto component Manufacturers’ Association of India (ACMA) revealed that the domestic auto component industry has pegged 20% growth in the year 2009-10. Its turnover remained US$ 22 billion.

The reason for such growth has been the expansion activities undertaken by SMEs manufacturing auto component so as to meet the growing demand of automobiles in the country.

According to Jayant Davar, president of ACMA, the automobile sector recorded 30 % sales growth signaling the growth to surpass 18 % in the current fiscal year. He comments “The adverse impact of the global economic slowdown is now a thing of the past and the auto industry witnessed unprecedented growth in 2009-10. Auto components imports crossed US$8 billion, however, exports remained flat at US$3.8 billion owing to slow recovery in the US and European markets.”

But then there are also constraints faced by small and mid-sized auto component manufacturers. High input costs, poor infrastructure and power shortage are hindrances to the growth momentum. In-spite of such constraints, ACMA is looking forward to US$3 billion investment every year on a continual basis for 10 years.

Tags: ACMA, economic, growing demand of automobiles, industry, recovery, SMEs, SMEs manufacturing, US and European markets
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Coimbatore has become a hot bed of e-marketing. The adoption of internet based marketing has resulted in rise of job orders from overseas customers. Coimbatore has more than 50,000 SMEs, and this initiative has reduced marketing costs and increased international job orders.

The Tamil Nadu Association of Cottage and Micro Enterprises (TACT) disclosed that 15 percent of units in Coimbatore are having their own websites. The major industry types that Coimbatore houses are engineering, automotive components, textile machinery and pumps. Industries in Coimbatore have recorded 10 -15 percent increase in job orders from abroad. J. James, president of TACT, says, “What we thought would be a cost-cutting measure — adoption of e-marketing — has yielded more profits.”

K Raja, in December 2009, started a website for his engineering unit in Coimbatore and for the first time secured a job order from a German customer this year. He comments that by building links and creating valuable content help to gain traffic. Then M Saravanakumar, the owner of a Coimbatore-based Auto Engineering Works company, has 40 % orders from overseas customers. He says that, ‘profit margins in the domestic market were a fraction of those on foreign orders’. He recently purchased five new machines worth Rs 26 lakh each for his unit.

E-marketing can help SMEs perform efficiently in the global market. The reason is it gives SMEs global reach, makes lower cost interactive campaigns that brings measurable results and improves upon organizations’ marketing goals.

Tags: automotive components, e-marketing, foreign orders’, internet based marketing, job orders, marketing goals, Micro Enterprises, SMEs, textile machinery
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