The Indian auto component industry is cautiously optimistic about clocking a high single digit growth this year as the automobile sector shows signs of recovery across segments.
After putting up a “successful” components show that ran simultaneously with the Auto Expo, industry body Auto Components Manufacturers Association of India (ACMA) expects the domestic market to continue to be the bulk contributor to the business even as it looks for an uptick in exports.
“For the components industry, it is starting to look a little positive. We are seeing signs of recovery. Passenger cars segment has shown growth while the commercial vehicles have come up well, although the rural market is a little bit depressed,” ACMA President Arvind Balaji said. He also hoped that the early signs of growth in economic activity will result in more broad based growth.
When asked about growth expectations this year, Balaji said: “It is a little bit too early to say what growth will we clock. We will have to wait for the Bugdet before we put a number but it would be in high single digits.”
The Indian auto-component segment currently stands at Rs 2.34 lakh crore ($38.5 billion) with exports at Rs 68,500 crore ($11.2 billion). He said the domestic market will continue to be the major contributor for the component industry as exports contribute just about 30 per cent to the total.