Cluster International Association Partnerships India & Africa

The African continent is home to approximately half of the countries with the world's fastest-growing economies. Therefore, Africa is and remains a growing market for the association and its members. The project between the VDA and the pan-African automotive association of the African Association of Automotive Manufacturers (AAAM), funded by the German Federal Ministry for Economic Cooperation and Development (BMZ), ended in February 2024 after 3.5 successful years. A follow-up project with a duration of 2.5 years was launched in November 2024.

Together, we are improving the framework conditions for the automotive industry on the African continent and supporting our partner association in building its capacity. We have already established working groups on topics such as vehicle financing, alternative drive systems, trade and logistics, location selection, and political framework conditions, and we are continuing these collaborations at various levels. Africa's relevance as a production location continues to grow: According to forecasts by our partner association AAAM, new vehicle sales are expected to increase from the current level of approximately 1.2mn vehicles to approximately 5mn new vehicles by 2035.

In addition to various delegation trips for VDA and AAAM members, the topics in 2024 included supporting new laws to facilitate trade and production in various African countries, the diversification of value chains, the processing of critical and strategic raw materials on the continent, and the improvement of fuel qualities on the African continent. The VDA has contacts for Africa in Berlin and South Africa and is happy to support its members, for example, by providing data, market assessments by local associations and partners, and establishing contacts with local companies and other stakeholders.

India is an important partner and future market for the German automotive industry, particularly with regard to the goal of diversification, bilateral trade, cooperation in the field of electromobility, and digitalization. German manufacturers and suppliers are already represented in India with more than 1,400 locations and production facilities. The positive trend in the Indian passenger car market continued in 2024. The Indian market continues to boom: In 2024, more than 4mn passenger cars were sold in the Indian passenger car market. This enabled India to defend its position as the world's third-largest single market for passenger cars. The VDA therefore supports cooperation with India through the "Indo-German Working Group on Automotive" between the German and Indian governments, as well as close cooperation with the Indian partner associations ACMA (suppliers) and SIAM (OEMs). From 2017 to June 2023, the VDA implemented an official association partnership with its Indian sister associations ACMA and SIAM with funding from the German Federal Ministry for Economic Cooperation and Development (BMZ) and sequa gGmbH, which set new standards in cooperation.

In 2024, the partnership was able to make a difference by hosting the 15th IAA India Day, working in the Indo-German Working Group on Automotive, accompanying the negotiations on the EU-India Free Trade Agreement, supporting VDA member companies with market access (e.g., with quality control regulations), and holding conferences and workshops to increase the competitiveness of Indian suppliers. VDA member companies continue to benefit from information offerings, delegation trips, and networking with relevant stakeholders in India. We would be happy to send you the current VDA India paper upon request.

Support offers from the Association Partnerships Africa and India for VDA members:

• Help with barriers to market access
• Support with market entry
• Market and country information
• Networking with partner associations and relevant stakeholders from politics and industry
• Conferences / Webinars / IAA Events
• Regular delegation trips and trade fair participation in partner countries
• Foreign trade fair program (German joint stands)
• Africa and India email distribution list with current information