"Indian machine tool firms are currently focussing only on the domestic market. They should focus on export markets as there are enough opportunities for them in Germany and other European countries. They have the ability to serve the export markets," GMTMA Executive Director Helmut Von Monschaw said.
Germany was one of the largest importers of machine tools and the users of machine tools in that country were financially strong, he added.
Driven by the need to reduce costs and source equipment at optimal prices, several German firms have started procuring machine tools from other countries like China, Russia and Bulgaria.
"India can also join this table to serve the German market. But it needs to ensure reliability, quality and low price. The companies need to invest in logistics and support services to ensure consistency and promptness in delivery of goods," he said.
German machine tool industry is the world's leading exporter ahead of Japan and Italy and the second biggest producer of machine tools. It accounts for 13 per cent of the total international sales (currently estimated at a value of 32 billion euro).
With a 20 per cent share of the Indian machine tool market, Germany is the second largest exporter after Japan. India currently occupies the twenty-second position on the list of Germany's biggest customers.
In the last three years, German exports to India have increased by two thirds to touch 55 million euro in 2003. Bulk of these exports was accounted for by machining centres, components and accessories as well as grinding and gear-cutting machines.
Indian auto industry was the major consumer of German machine tools, Monschaw said. He also said that more than half of the machine tool consumption in Europe, which accounts for 40 per cent of global consumption, was being met through imports.
Thus Europe was much more open to imports and offered an attractive market for the manufacturers based in other continents, he added.
