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Automotive Trade Mission to New Delhi, Pune and Chennai, India

American Government Special Collections Reference Desk

American Government

Automotive Trade Mission to New Delhi, Pune and Chennai, India

Elnora Moye
International Trade Administration
November 25, 2013

[Federal Register Volume 78, Number 227 (Monday, November 25, 2013)]
[Pages 70278-70281]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-28167]



International Trade Administration

Automotive Trade Mission to New Delhi, Pune and Chennai, India

April 24-April 30, 2014.
AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.


Mission Description

    The United States Department of Commerce, International Trade 
Administration, is organizing an automotive trade mission to India (New 
Delhi, Pune and Chennai), April 24-30, 2014. The purpose of the mission 
is to introduce U.S. firms to India's rapidly expanding automotive 
market. Many global automotive manufacturing companies such as Ford, 
GM, BMW, AUDI, Volvo, Renault, Hyundai, Daimler, and Nissan, among 
others, have established operations in India. The mission will assist 
U.S. companies to explore and pursue export opportunities in the Indian 
automotive sector. The mission to India will include representatives 
from leading U.S. companies that provide aftermarket, auto components, 
vehicle performance enhancement, automotive care, maintenance, service 
parts, accessories, testing and garage equipment product and services, 
and U.S. trade associations representing companies in these sectors. 
The mission will visit three cities, New Delhi, Pune and Chennai, where 
participants will receive market briefings and participate in 
customized meetings with key officials, trade and chamber associations, 
and prospective partners.

Commercial Setting

    The automotive industry is one of the most significant and growing 
sectors of the Indian economy. In 2012, India produced 20 million 
vehicles, making its passenger car and commercial vehicle manufacturing 
industry the sixth largest in the world. India's growth is driven by a 
young population and an expanding middle class with an extremely low 
rate of motor vehicle ownership. India is ranked 157th in the world in 
terms of vehicles per capita. Therefore, opportunities in automotive 
industries will continue to grow, and it is estimated that by 2016 the 
automotive market will reach the $145 billion mark. To support and 
sustain the anticipated growth in the automotive industry, the 
Government of India (GOI) launched the ``Automotive Mission Plan (AMP), 
2006-2016.'' In the plan, the GOI has accorded the highest priority for 
the automobile and components industry sector.
    The AMP envisions that India will emerge as the worldwide 
destination of choice for the design and manufacture of automobiles and 
auto components by 2016. The plan also projects the sales revenue of 
the automotive sector reaching $122-159 billion by 2016 from $34 
billion in 2006. The GOI allows 100% foreign investment in the 
automobile and parts industry. The AMP is also a clear sign that the 
GOI considers the automotive sector to be very significant. U.S. 
companies could benefit from the unprecedented growth of this industry.
    U.S. firms successfully compete in the maturing Indian automotive 
industry. Main domestic competitors are Tata Motors, Maruti-Suzuki, 
Mahindra and Mahindra, Eicher Motors, Force, Hindustan Motors, Premier, 
and Asia Motor Works. Competing non-U.S. brands in the Indian 
automotive manufacturing market include Hyundai, Suzuki, Mitsubishi, 
Toyota, BMW, Nissan, Volkswagen, Skoda, Mercedes Benz, Fiat, Renault, 
and Volvo. As the automotive manufacturing market matures, it is 
expected that the areas of opportunities for U.S. companies will be in 
the automotive aftermarket, green technologies and automotive 
components and accessories. The Indian auto components industry sector 
has been recording an average annual growth of over 20% in the past few 
years. According to a McKinsey study, the auto components industry 
sector has the potential to reach $40 billion by 2016. Technology-
focused products for the original equipment manufacturer segment offer 
best prospects in the Indian auto components sector. These include 
gears and components, clutch components, brakes and components, valves, 
axles, shafts, engine parts, electrical components, suspension, and 
body building parts. Indian agents and distributors actively seek 
opportunities to market U.S. technologies in the domestic market.

New Delhi

    New Delhi is the capital of India, and the seat of the executive, 
legislative, and judiciary branches of the Government of India. It also 
serves as the center of the Government of the National Capital 
Territory of Delhi. New Delhi is situated within the metropolis of 
Delhi and is one of the eleven districts of Delhi National Capital 
Territory. The majority of India's car manufacturing industry is based 
around three clusters to the north, west, and south of New Delhi. 
Gurgaon and Manesar in Haryana form the

[[Page 70279]]

northern automotive cluster. The northern automotive cluster located in 
the National Capital region contributes around 32% of the country's 
automotive growth. The Society of Indian Automobile Manufacturers and 
Automotive Component Manufacturers Associations are headquartered in 
New Delhi.

Pune, Maharashtra

    Pune, the State of Maharashtra's second largest city after Mumbai, 
has been a hub for the engineering industry in India for over five 
decades. Also known as the Detroit of India, Pune today is one of 
India's largest auto manufacturing hubs with about 7,000 auto ancillary 
units in and around Pune. It is home to Tata Motors (developer of the 
$2000 car Nano); the world's second largest two-wheeler manufacturer 
Bajaj Auto; the world's largest forging company, Bharat Forge; and many 
other leading auto manufacturers, such as Daimler Chrysler, General 
Motors, John Deere, FIAT, etc. Pune is also home to the Automotive 
Research Association of India (ARAI), Central Institute of Road 
Transport (CIRT) and the Vehicle Research and Development Establishment 
(VRDE). The Pune region has a buzzing auto components industry ranging 
from innumerable micro to small and medium scale units. The Pune 
automobile industry landscape includes the `who's who' of Indian and, 
increasingly, the leading international automobile industry producers. 
In 2013, investment inflows of an estimated $ 6.5 billion were made in 
Pune in this sector. Simultaneously, approximately $1.6 billion of 
investment in the auto ancillary and component manufacturing industry 
is also expected. While Pune's proximity to Mumbai, accessibility to 
ports for the entry and exit of raw materials and finished goods, and 
ease of setting up business have been key drivers of the growth of the 
auto industry, the large number of institutions of higher learning 
which support several Industrial Training Institutes have boosted the 
growth of the auto industry.

Chennai, Tamil Nadu

    Chennai, formerly known as Madras, is the capital city of the 
Indian state of Tamil Nadu. Located on the Coromandel Coast off the Bay 
of Bengal, it is a major commercial, cultural, economic and educational 
center in South India. The city is base to around 30 percent of India's 
automobile industry and 40 percent of India's auto components industry. 
A large number of automotive companies including Hyundai, Renault, 
Robert Bosch, Nissan Motors, Ashok Leyland, Daimler AG, Caterpillar 
Inc., Komatsu Limited, Ford, BMW and Mitsubishi have manufacturing 
plants in Chennai. Chennai accounts for 60% of the country's automotive 
exports. According to Forbes magazine, Chennai is one of the fastest 
growing cities in the world and the only Indian city to be rated in the 
``Forbes-Top 10 Fastest Growing Cities in the World''. It is ranked 4th 
in India for hosting Fortune 500 companies, next only to Mumbai, Delhi 
and Kolkata.

Mission Goals

    The goals of the Automotive Trade Mission to India are to provide 
participants with first-hand market information and one-on-one meetings 
with business contacts, including potential end users and partners, so 
that they can position themselves to enter or expand their presence in 
the automotive cluster cities in India. The mission will focus on 
helping participants to obtain market information, to establish 
business and government contacts, to solidify business strategies, and/
or to advance specific projects.
    The mission also will facilitate first-hand market exposure and 
access to government decision makers and key private-sector industry 
contacts, including potential partners. It will provide opportunities 
for participants to have policy and regulatory framework discussions 
with government officials and private sector representatives in order 
to advance participants' interests in India.

Mission Scenario

    The first stop on the mission itinerary is New Delhi, where 
participants will arrive on Thursday April 24, 2014. The next day, 
Friday April 25th, the participants will participate in industry 
briefings, meetings with Government decision makers, one-on-one 
business meetings, and networking lunch meetings with chamber/
associations. A welcome reception for the delegates is scheduled for 
the evening of April 25, 2014.
    On Saturday, April 26th, a half-day site visit to an automobile OEM 
manufacturing facility is scheduled. Following the site visit, the 
delegates will start departing Delhi for Pune on the evening of 
Saturday or early on Sunday April 27th. On Monday morning, April 28th, 
the delegates' program in Pune will start with a local industry 
briefing, followed by one-on-one meetings. At noon, there will be a 
networking luncheon with local businesses and multipliers. After lunch, 
the one-on-one meetings will continue. A networking reception is 
scheduled on the evening of April 28, 2014.
    On Tuesday morning, April 29th, a half-day site visit to an 
automobile OEM manufacturing facility in Pune is scheduled. Following 
the site visit, the delegates will start departing Pune for Chennai. 
Time permitting, an afternoon site visit in Chennai is proposed, to be 
followed by a welcome dinner or a networking reception. On Wednesday 
morning, April 30th, the delegates' program will start with a market 
briefing, followed by one-on-one meetings. At noon, there will be a 
networking luncheon with local businesses and multipliers. After lunch, 
the one-on-one meetings will continue. The mission concludes after the 
one-on-one meetings.

                           Proposed Timetable
                                NEW DELHI
Thursday April 24, 2014..............   Arrive in New Delhi.
Friday, April 25, 2014...............   Breakfast briefing by
                                        U.S. Embassy Officials.
                                        Meeting with Government
                                        decision makers.
                                        One-on-one business
                                        Networking lunch hosted
                                        by a Chamber--TBC.
                                        One-on-one business
                                        meetings continue.
                                        Welcome reception for
                                        Delegates in the evening.
Saturday, April 26, 2014.............  Half a day site visit--TBC.

[[Page 70280]]

Saturday, April 26, 2014 or Sunday,    Following the site visit,
 April 27, 2014.                        delegates plan to depart Delhi
                                        for Pune on Saturday or Sunday
Monday, April 28, 2014...............  Breakfast briefing by Consulate/
                                        Industry Association.
                                       One-on-one business meetings.
                                       Networking lunch hosted by
                                        Chamber with local industry
                                       One-on-one business meetings
                                       Networking reception with
                                        Industry contacts.
                                       Overnight stay in Pune.
Tuesday, April 29, 2014..............  Half a day site visit--TBC.
Tuesday, April 29, 2014..............  Following the site visit,
                                        delegates depart Pune for
                                       Site visit--TBC.
                                       Welcome dinner for Delegates or
                                       Networking reception with
                                        Industry contacts.
Wednesday, April 30, 2014............  Breakfast briefing by the
                                        Consulate/Industry Association.
                                       One-on-one business meetings.
                                       Networking lunch hosted by
                                        Chamber of Commerce and
                                       One-on-one business meetings
                                       Mission concludes and delegates
                                        depart Chennai for U.S. as per
                                        individual itinerary.

Participation Requirements

    All parties interested in participating in the trade mission must 
complete and submit an application package for consideration by the 
U.S. Department of Commerce. All applicants will be evaluated on their 
ability to meet certain conditions and best satisfy the selection 
criteria as outlined below. A minimum of 15 and maximum of 20 companies 
and/or trade associations will be selected from the applicant pool to 
participate in the mission. U.S. companies and/or trade associations 
already doing business in or seeking business in India for the first 
time may apply.

Fees and Expenses

    After a company has been selected to participate on the mission, a 
payment to the U.S. Department of Commerce in the form of a 
participation fee is required. The participation fee is $5500 for large 
firms and $5300 for small or medium-sized enterprises (SME) \1\ and 
trade associations. The fee for each additional representative is $750.

    \1\ An SME is defined as a firm with 500 or fewer employees or 
that otherwise qualifies as a small business under SBA regulations 
(see http://www.sba.gov/services/contracting opportunities/
sizestandardstopics/index.html). Parent companies, affiliates, and 
subsidiaries will be considered when determining business size. The 
dual pricing reflects the Commercial Service's user fee schedule 
that became effective May 1, 2008 (see http://www.export.gov/newsletter/march2008/initiatives.html for additional information).


    The mission fee does not include any personal travel expenses such 
as lodging, most meals, local ground transportation between cities in 
India, except for ground transportation for official site visits or as 
otherwise stated in the proposed timetable, and air transportation from 
the U.S. to India and return to the U.S. Trade mission participants 
will, however, be able to take advantage of U.S. Government rates for 
hotel rooms. Business visas may be required. Government fees and 
processing expenses to obtain such visas are not included in the 
mission costs. However, the U.S. Department of Commerce will provide 
instructions to each participant on the procedures required to obtain 
necessary business visas.

Conditions for Participation

    Applicants must submit a completed and signed mission application 
and supplemental application materials, including adequate information 
on the company's products and/or services, primary market objectives, 
and goals for participation. If the Department of Commerce receives an 
incomplete application, the Department may either: reject the 
application, request additional information/clarification, or take the 
lack of information into account when evaluating the applications.
    Each applicant must also certify that the products and services it 
seeks to export through the mission are either produced in the United 
States, or, if not, are marketed under the name of a U.S. firm and have 
at least fifty-one percent U.S. content. In the case of a trade 
association or trade organization, the applicant must certify that, for 
each company to be represented by the trade association or trade 
organization, the products and services the represented company seeks 
to export are either produced in the United States, or, if not, 
marketed under the name of a U.S. firm and have at least 51% U.S. 

Selection Criteria for Participation

    The following criteria will be evaluated in selecting participants:
     Suitability of a company's products or services (or, in 
the case of a trade association or trade organization, represented 
companies') to the Indian markets.
     Company's (or, in the case of a trade association or trade 
organization, represented companies') potential for business in India, 
including likelihood of exports resulting from the mission.
     Consistency of the applicant's goals and objectives with 
the stated scope of the mission.
    Additional factors, such as diversity of company size, type, 
location, and

[[Page 70281]]

demographics, may also be considered during the review process.
    Referrals from political organizations and any documents, including 
the application, containing references to partisan political activities 
(including political contributions) will be removed from an applicant's 
submission and not considered during the selection process.

Timeframe for Recruitment and Application

    Mission recruitment will be conducted in an open and public manner, 
including publication in the Federal Register, posting on the Commerce 
Department trade mission calendar (http://www.export.gov/trademissions/
) and other Internet Web sites, press releases to general and trade 
media, direct mail, broadcast fax, notices by industry trade 
associations and other multiplier groups, and publicity at industry 
meetings, symposia, conferences, and trade shows.
    Recruitment for this mission will begin immediately and conclude no 
later than January 31, 2014. The U.S. Department of Commerce will 
review applications and make selection decisions beginning February 
2014. Applications received after January 31, 2014 will be considered 
only if space and scheduling constraints permit.

How To Apply

    Applications can be completed on-line at the Trade Mission Web site 
or can be obtained by contacting Kellie Holloway Jarman at the U.S. 
Department of Commerce (see contact details below). Completed 
applications should be submitted to Kellie Holloway Jarman.


U.S. Commercial Service, Export Assistance Center, Portland
    Kellie Holloway Jarman, Senior International Trade Specialist, One 
World Trade Center, 121 SW Salmon St., Suite 242, Portland, OR 97204, 
Tel: +1-503-326-3002, Mobile: +1-503-314-2035, Email: 
U.S. Commercial Service India
    James P. Golsen, Principal Commercial Officer for South India, U.S. 
Commercial Service, c/o U.S. Consulate General, 220 Anna Salai, 
Chennai, India 600006, Tel: +91-44-2857-4209, Email: 

Elnora Moye,
Trade Program Assistant.
[FR Doc. 2013-28167 Filed 11-22-13; 8:45 am]

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