Automotive Trade Mission to New Delhi, Pune and Chennai, India |
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Elnora Moye
International Trade Administration
November 25, 2013
[Federal Register Volume 78, Number 227 (Monday, November 25, 2013)]
[Notices]
[Pages 70278-70281]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-28167]
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DEPARTMENT OF COMMERCE
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.
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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
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NEW DELHI
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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
meetings.
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.
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[[Page 70280]]
Delhi--Pune
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Saturday, April 26, 2014 or Sunday, Following the site visit,
April 27, 2014. delegates plan to depart Delhi
for Pune on Saturday or Sunday
evening.
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PUNE
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Monday, April 28, 2014............... Breakfast briefing by Consulate/
Industry Association.
One-on-one business meetings.
Networking lunch hosted by
Chamber with local industry
representatives--TBC.
One-on-one business meetings
continues.
Networking reception with
Industry contacts.
Overnight stay in Pune.
Tuesday, April 29, 2014.............. Half a day site visit--TBC.
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Pune--Chennai
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Tuesday, April 29, 2014.............. Following the site visit,
delegates depart Pune for
Chennai.
Site visit--TBC.
Welcome dinner for Delegates or
Networking reception with
Industry contacts.
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Chennai
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Wednesday, April 30, 2014............ Breakfast briefing by the
Consulate/Industry Association.
One-on-one business meetings.
Networking lunch hosted by
Chamber of Commerce and
Industry.
--TBC.
One-on-one business meetings
continues.
Mission concludes and delegates
depart Chennai for U.S. as per
individual itinerary.
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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.
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\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).
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Exclusions
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.
content.
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.
Contacts
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:
kellie.holloway@trade.gov.
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:
james.golsen@trade.gov.
Elnora Moye,
Trade Program Assistant.
[FR Doc. 2013-28167 Filed 11-22-13; 8:45 am]
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