Mumbai : The domestic auto component industry is expected to grow in early double digits on back of recovery in vehicles sales in the ongoing financial year. The auto component industry's turnover stood at 2.55 lakh core during financial year 2015-16, up 8.8 per cent, compared to the previous year. It has registered a compounded annual growth rate of six per cent over the last six years.
Indian auto component industry is expected to grow in the range of 10-12%. With signs of recovery in the auto market in the country and prospects of a better monsoon, the component sector in expected to witness growth in early double digits this year."
The domestic auto component industry grew by 8.8% to $ 39 billion in the last financial year. Volatility in global markets, however, hit exports which dropped by 3.7% to $ 10.8 billion. Imports grew at a faster pace by 9.3% to $13.8 billion. "Regulatory changes will pose both challenges and at the same time open up opportunities for component makers in India. We have to invest more in research and development", informed Balaji. Last fiscal, the component industry invested in the range of Rs 2,700-Rs 4,000 crore compared with Rs 2,000-Rs 2,800 crore in 2014-15. "The enhancement in investment can be attributed to better business prospects owing to improving market sentiments," ACMA Director General Vinnie Mehta said.