In 1985, Komax delivered its first Kappa machine to India. And this is also when we want to start telling the story of the Indian automotive industry, because the automotive industry and Komax are closely linked, forming a perfect symbiosis.

Until 1985, India had a closed seller's market, with only five suppliers. The models were outdated, and customers had to wait a long time for the cars they ordered. In 1983, a revolution began when the Indian government and Suzuki formed a joint venture and started local production. The buyer's market set in, and boisterous growth began. Today, almost every second car in India is a Suzuki. In 1993, licensing also ended and big OEMs started assembly operations in India. In 2017, India introduced its Bharat Stage emission standards and graduated directly to the highest level VI in 2020.

The fourth largest automotive industry worldwide

At $100 billion US, the Indian automotive industry is now the fourth largest in the world in terms of value, and in the next five to six years its value is expected to rise to $300 billion US. In 2020, it overtook that of Germany, in terms of sales. With an export share of 8%, it contributes 2.3% to India's GDP.

The most important reason for this strong growth is the emerging economy, which has led to a steady increase in GDP and purchasing power. Both the population and income are growing steadily. In addition, there is rapid urbanization and the rural economy is expanding. But politics is also a factor. Before 2022, people were allowed to drive 15-year-old vehicles. As of this year, all 15-year-old and older vehicles must be scrapped.

India aims to increase its vehicle exports fivefold by 2026

What development does India expect in the next few years? By 2026, the Indian automotive industry aims to increase vehicle exports fivefold, with a focus on electric mobility. By 2030, India could lead the world in shared mobility, and in increasing the opportunities for autonomous and electric cars. The total investment expected by 2026 is estimated at 8 to 10 billion US dollars.

India offers excellent conditions for the automotive industry. The key growth factors are the government's policy support and financial incentives, domestic demand, a large supply of young skilled labor, international investment, legal copyright protection, and Public Private Partnerships (PPP).

Moving towards Industry 4.0

The Indian manufacturing industry is already moving towards Industry 4.0, with global leadership in IT and AI complementing this development. According to Cushman & Wakefield's Global Manufacturing Risk Index 2021, India is the second most attractive manufacturing hub in the world.

This development directly influences the Indian wire harness industry, as the particularly quality-conscious automotive segment is the largest customer. The industrial segment is currently in the transition phase from manual to semi-automatic production.

High expectations for the aerospace market

Aerospace is also an emerging market and is likely to represent the largest share of component manufacturing for the global market in the next 20 years. There are three main reasons for this.

Firstly, aviation is the most convenient, economical, and efficient way to travel, as there is no high-speed train network. Therefore, it is a very competitive and ever-growing sector in India. The Boeing Company & Airbus Group are developing suppliers, and hunting for start-ups, IT solutions, and joint venture partners.

Secondly, India is the largest importer of defense equipment. Fighter jets are one category, here. As per new policy norms, suppliers have to produce their jets in India, with 30% domestic content. Therefore, all major jet suppliers are investing.

And thirdly, India is geographically the best location for global aviation companies to maintain and repair their aircraft. The required infrastructure is being expanded rapidly. In the next 7 to 10 years, India will become a hub for maintenance, repair, and operations services. In this context, airplane manufacturers are inviting existing suppliers to start new operations in India, and they are also developing new supplier bases in India. 

Technical progress requires even more wiring harnesses

It is not only the favorable economic structure that is responsible for the particularly large growth in demand for automotive wiring harnesses. It is also the technological progress. According to the latest government standards, car manufacturers produce vehicles with many safety functions and electronic gadgets (corresponding to Euro-VI). All this requires additional and complicated sensor harnesses to improve fuel efficiency and emission levels.

In addition, there are various general factors. India is a lucrative market for manufacturers, as the government has introduced wholly owned foreign equity in the automotive sector. Also, domestic sales are increasing in other emerging markets, further enhancing the growth environment. Although the Indian economy is mainly based on the domestic market, exports are also increasing along with India's share in the global supply chain.

Komax India’s sales increase by an average of 15% annually

This pleasing development has a direct impact on Komax's position in India. In 2007, the company founded its own wholly owned subsidiary: Komax Automation India Private Limited (KIND). Over the years, sales have increased by an average of 15% per year, with great customer satisfaction. With its wide range of products, KIND serves the entire value chain of all segments. As the market leader in India, Komax delights its customers primarily with crimp-to-crimp machines. The latest Gamma 448/450 is the most promising machine for the Indian wire harness industry.

OEMs appreciate our high-quality solutions with digitalization concepts that drastically reduce operator influence. A typical example is the QPlite crimp force monitoring module. This module ensures the crimp quality of the manual benchtop crimping presses with 100% poka-yoke. Even Indian manufacturers and other Asian suppliers of crimping machines and tools in India use QPlite and other quality tools from Komax in their products. We are greatly encouraged by these demonstrations of confidence.

KIND is also a pioneer and significant contributor within the fast-growing Indian electric vehicle industry. The company’s close cooperation with Indian vehicle and wire harness manufacturers opens up extensive opportunities for innovation. Besides developing technological solutions, KIND also organizes webinars, technological seminars, crimp know-how seminars, and consultations. 

First Indian Komax plant producing test equipment

In the meantime, KIND operates six branches for sales and service. And since this year, also the first production facility: Komax Testing india Pvt Ltd. The plant is located on an area of almost 3,000 m2 (30,000 sq ft) in the important automotive and industrial city of Pune in the state of Maharashtra. Here we are manufacturing TSK Products (test tables and test modules). And because we are closer to wire harness manufacturers here, this business is bound to expand. Lead times and customization are the key to this testing business. This represents a proactive step toward improving customer proximity. Customer confidence was the biggest driver for expanding production in India.

KIND's most important asset is its employees. Most of them have been with us for over 10 years. Mahesh Gulati, for example, joined Komax in 1987 as an engineer. Since 2015, he is the Managing Director of KIND as well as Komax Testing India Pvt Ltd. Of course, this continuity is also highly valued by our customers.

Strong growth expected for development team 

Komax rightly has high expectations regarding the Indian market. This country is strong in the IT sector and is therefore predestined for the development of digital products, the demand for which is also constantly increasing among our customers. In the next five to six years, our team is expected to comprise 30 to 40 development engineers, for whom there will be plenty of work here.

As a result of supply chain issues, India will become a more global supplier of Komax products and machines. The Komax Testing factory was set up precisely in preparation for this further phase.