The German auto industry is eyeing infotronics, IT and intelligent mobility solutions as emerging opportunities for Indo-German collaboration.
Currently, automotive machine components account for only 3.5 per cent of Germany's total imports of €6 billion from India.
“But the segment is growing and there is potential for more – both from traditional segments and emerging areas,” says Mr Sebastian Wittke, Senior Manager – Mechanical Electronic Technologies, Germany Trade & Invest.
While German car makers will continue to import traditional automotive machine parts such as forgings from India, collaboration is also required in information communication technology, says Mr Wittke.
Emerging areas of imports include solutions for mobility, power-train systems, energy efficiency of car systems, hybridisation of cars and electric vehicles. The Tata Nano is a classic example of Indo-German collaboration with Bosch being the brain behind several innovations in the Indian car. And more such efforts are needed, especially in the field of IT and electronics, says Mr Michael Pfeiffer, Chief Executive, Germany Trade & Invest.
“With the cars of the future increasingly geared towards infotronics, R&D becomes an important factor. This is where India – with its engineers, can partner with German car makers,” says Mr Pfeiffer who is part of the German trade delegation visiting New Delhi and Chennai to woo investments in the auto sector in Germany.
The German auto industry was estimated at €316 billion in 2010; 5.5 million cars were built. The biggest Indian player in Germany's automotive sector is Bharat Forge with a significant manufacturing base in the country; it also plans to expand its footprint in Germany.
IT major Tata Consultancy Services also has a huge presence in Germany and works with several auto majors.
There are 280 Indian companies in Germany, across various industries. Indian investment in Germany in 2010 was €290 million.
Germany is also beefing up its presence in India. There are 360 German companies in India including auto majors such as Volkswagen and Mercedes Benz and Bosch. And there will be more in the coming years, says Mr Pfeiffer.