The report released by Automotive Component Manufacturers Association of India (ACMA), detailed Industry Performance Review for the fiscal 2015-16.
Commenting on the performance of the auto component industry, the association’s president Arvind Balaji said: “Despite a challenging year, the auto component industry has registered a satisfactory growth of 8.8 percent in 2015-16.” He added that the “component sector is expected to witness growth in early double digits this year.”
OEMs are expected to increase locally sourced components in their vehicles, driven by cost savings and protection f rom currency fluctuations. The high taxation on imports is also a driving factor behind increased localisation. Key findings of the report showed exports of auto components grew by 3.5 percent to US$10.8 billion from US$11.2 billion in 2014- 15, registering a CAGR of 18 percent in the last six years.
Europe accounted for 36 percent of exports followed by Asia and North America, each at 25 percent. Exports to Central America and North America increased by 30 percent and 3 percent respectively, over the previous fiscal. The key export items included engine par ts, transmission parts, brake system and components, body parts, exhaust systems, turbochargers, etc. India’s Automotive Mission Plan (AMP 2026) has set a target of a turnover of US$223 billion by 2026 for the auto component sector backed with exports ranging between US$80 to US$100 billion.
The automotive industry is an engine of growth for the Indian economy. The auto component industry contributes 25.6 percent to the manufacturing GDP and 3 .8 percent to national GDP, providing direct employment to 1.5 million people.
APMEN Sept 2016, News
