Export of HVACs (Systems/Equipment) for Automobiles from India.

[YAGAY andSUN]

Introduction:

The export of HVAC (Heating, Ventilation, and Air Conditioning) systems for automobiles from India has seen significant growth due to the increasing demand for advanced automobile climate control systems worldwide. With the global automotive industry increasingly focusing on comfort, energy efficiency, and environmental sustainability, HVAC systems have become an essential component in modern vehicles. India, being a major manufacturer and exporter of automotive components, is poised to become a key supplier of HVAC systems, contributing to both the domestic economy and the global automobile industry.

Definition of HVACs:

HVAC (Heating, Ventilation, and Air Conditioning) systems for automobiles are integrated systems used to provide thermal comfort and improve air quality inside a vehicle. These systems control the temperature, humidity, and airflow, providing a comfortable environment for the passengers while ensuring the vehicle’s efficiency and safety.

• Heating: Warms the interior of the vehicle during cold weather conditions.
• Ventilation: Circulates fresh air and removes stale or contaminated air from inside the cabin.
• Air Conditioning: Cools the air within the vehicle cabin to ensure comfort, especially in hot weather.

How HVACs Work:

HVAC systems in automobiles work by using a combination of mechanical, electrical, and chemical processes. Here’s an overview of how the system operates:

1. Heating: The heater core, which uses the engine's coolant, warms the air passing through it. The heated air is then directed into the vehicle’s cabin.
2. Ventilation: Fresh air from outside is filtered, then circulated inside the cabin via fans. The air is filtered for dust and other contaminants before being circulated.
3. Air Conditioning: The compressor pressurizes the refrigerant gas, turning it into a hot, high-pressure liquid. This liquid then passes through the condenser and evaporator, releasing cold air into the cabin while absorbing the cabin's heat.

The HVAC system ensures proper air distribution, temperature regulation, and air quality by using fans, filters, refrigerants, heat exchangers, and condensers.

Key Components of HVAC Systems/Equipment:

1. Compressor: Compresses refrigerant gas to a high pressure, enabling heat exchange.
2. Condenser: Cools the high-pressure refrigerant gas, causing it to condense into a liquid.
3. Evaporator: Absorbs heat from the cabin air and helps cool it.
4. Blower Fan: Distributes conditioned air inside the vehicle.
5. Expansion Valve: Regulates the flow of refrigerant into the evaporator.
6. Filter: Removes contaminants from the air entering the system and cabin.
7. Heater Core: Provides heating by using coolant from the engine.
8. Control Unit: Manages the operation of the HVAC system, adjusting temperature and airflow according to the vehicle’s requirements.

HSN Code:

The Harmonized System (HS) code for automotive HVAC systems typically falls under:

• HSN Code 8415: This includes air conditioning machines and parts thereof, such as compressors and evaporators for automotive applications.

Manufacturers in India:

Several Indian companies are leading the production and export of HVAC systems for automobiles, providing high-quality components to global automobile manufacturers. Some of the prominent manufacturers include:

• Sanden Vikas (India) Pvt. Ltd.: A joint venture of Sanden Corporation, Japan, and Vikas Group, manufacturing automotive air conditioning systems.
• Subros Limited: One of India’s largest manufacturers of automotive HVAC systems, specializing in OEM solutions for various vehicle segments.
• Denso India Limited: A subsidiary of Denso Corporation, a global leader in automotive HVAC systems and components.
• Kirloskar Pneumatic Co. Ltd.: Known for manufacturing compressors, HVAC systems, and other automotive components.

Export Destinations:

The primary export destinations for HVAC systems for automobiles from India include:

• United States: A large market for both passenger vehicles and commercial trucks requiring advanced HVAC systems.
• Europe: Countries such as Germany, France, and the UK import HVAC systems for a variety of vehicles, including electric and hybrid vehicles.
• South East Asia: Countries like Thailand, Indonesia, and Malaysia have a growing automotive sector, driving demand for HVAC components.
• Middle East: The UAE, Saudi Arabia, and other Gulf nations have a significant demand for vehicle HVAC systems due to high temperatures.
• Africa: Nations like South Africa and Egypt are also emerging markets for automotive HVAC systems.

Export Performance:

India’s export performance in the automotive HVAC sector has been steadily increasing. The automotive HVAC market is expected to grow, driven by factors like:

• Rising demand for comfort in vehicles: Enhanced consumer preference for better climate control systems.
• Growth in the electric vehicle (EV) market: EVs require specialized HVAC systems for efficient cooling and heating, a growing opportunity for India’s HVAC exports.
• Cost advantage: Indian manufacturers offer competitive pricing and meet international standards, making them attractive to global buyers.

India’s automotive HVAC export performance continues to improve, with strong growth expected in the coming years as global markets demand more technologically advanced and eco-friendly systems.

Export Incentives:

The Indian Government offers several incentives and schemes to promote the export of automotive HVAC systems:

1. AA (Advance Authorization Scheme): Allows duty-free import of raw materials and components required for export production.
2. EPCG (Export Promotion Capital Goods Scheme): Enables the import of capital goods at concessional duty rates to boost production capacity.
3. Duty Drawback: Provides a refund of duties paid on imported materials used for the production of export goods.
4. RODTEP (Remission of Duties and Taxes on Export Products): Remits taxes, duties, and levies not refunded under other schemes.
5. MAI (Market Access Initiative Scheme): Supports efforts to explore new markets and increase export awareness for Indian products.
6. MDA (Market Development Assistance): Provides financial assistance for promotional activities and market development efforts.
7. Interest Equalization Scheme: Offers reduced interest rates for export financing to enhance competitiveness.

Governing Body, Export Promotion Councils, and Trade Organizations:

• Automotive Component Manufacturers Association of India (ACMA): This body plays a significant role in promoting the export of automotive components, including HVAC systems.
• Federation of Indian Export Organizations (FIEO): Supports Indian exporters in accessing global markets.
• Ministry of Commerce & Industry: The government ministry responsible for formulating policies and regulations for export activities.

Government Initiatives:

• National Automotive Testing and R&D Infrastructure Project (NATRiP): Promotes R&D for developing innovative automotive technologies.
• Make in India: A government initiative encouraging manufacturers to increase production in India, which includes HVAC systems for automobiles.
• Atmanirbhar Bharat (Self-Reliant India): Aims to reduce dependency on imports and enhance domestic manufacturing, including automotive components.

Challenges:

• Competition: Intense global competition, particularly from countries with lower labor costs and established manufacturing hubs like China.
• Technology Adoption: The need for continuous investment in R&D to stay ahead of technological advancements, such as eco-friendly and energy-efficient HVAC systems.
• Regulatory Hurdles: Navigating complex export regulations, both domestically and in international markets.

Way Forward:

• Investment in R&D: To develop energy-efficient and environmentally friendly HVAC systems, especially in the context of electric vehicles.
• Enhancing Export Strategy: Focusing on expanding into emerging markets and strengthening ties with global automotive manufacturers.
• Skill Development: Training and skill development in advanced manufacturing technologies, particularly for automation and smart HVAC systems.

Conclusion:

The export of automotive HVAC systems from India holds immense potential, driven by the growth of the automotive sector globally and the increasing demand for comfort, energy efficiency, and environmental sustainability. With the right government support, technological advancements, and market strategies, Indian manufacturers are well-positioned to expand their footprint in the global automotive HVAC market. By focusing on innovation and overcoming challenges like competition and technological gaps, India can become a leading exporter of HVAC systems for automobiles.