Britain’s exit from the European Union is unlikely to have a major impact on Indian auto component exports to the region, ICRA said on Monday. While EU accounts for 36 per cent of India’s auto component exports, share of the UK in Indian auto components export is a meager 5 per cent.
“Germany, in the EU, is a bigger destination for Indian auto component exports. Hence, the impact of a potential slowdown in the UK passenger vehicle (PV) market on direct automotive component exports from India is likely to be limited,” Ratings Agency ICRA said in a report. The UK PV industry has been growing at healthy pace during the last few years.