The Indian auto component industry expects to grow by over four-fold to US$ 113 billion by 2020, said Automotive Component Manufacturers' Association (ACMA).
The total passenger car production in the country will jump four times to reach 9 million cars in the next ten years, the industry body said in its forecast report. Although a major chunk of this will come from the fast growing domestic market, exports are likely to form around 35 per cent of the total market by 2020.
"India would be among the top-five vehicle producing countries in the world by 2020," said Vinnie Mehta, Executive Director, ACMA.
As per a report by ACMA, the turnover of the auto component industry is being estimated at around US$ 26 billion in 2010-11, up 18 per cent from US$ 22 billion in 2009-10. The report states that 40 per cent of the auto component industry was dominated by body and structural products in 2009, 20 per cent by engines and exhaust, and 10 per cent each by suspension and braking parts, transmission and steering parts, electronics a d electrical and interiors. By 2015, body and structural will account for 35 per cent of the auto component industry, engines and exhaust 20 per cent, suspension and braking parts, transmission and steering parts and electronics and electrical will account for 13 per cent each and interiors 9 per cent.
The potential compounded annual growth rate (CAGR) of the auto component industry is likely to be around 18 per cent in the period 2010-11. Exports from the auto component industry are estimated to be worth US$ 5 billion in 2010-11, according to the ACMA report.
Europe is likely to account for 36.9 per cent of India's auto components exports in 2010-11, followed by Asia with 28.1 per cent and North America with 24 per cent. The industry has witnessed a shift in the composition of exports over the years. Investments in the auto component industry are estimated at US$ 12 billion in 2010-11, according to ACMA.
India is turning out to be an attractive destination as a global outsourcing hub and manufacturing base for original equipment manufacturers (OEMs), especially after the global economic downturn.
With the finalisation of the Automotive Mission Plan (AMP) India is expected to become a preferred destination for design and manufacture of automobile. The plan envisaged an investment of US$ 40 billion and provided a road map to help transform India into a global automobile player. The AMP proposed a 25-point plan that included making India a manufacturing and export hub for small cars, multiutility vehicles, two and three-wheelers, tractors and components.
Auto component maker, Ashok Minda Group has completed the acquisition of specialist composite moulding manufacturer Aksys Koengen of Germany. After the acquisition, Aksys has been renamed Minda Schenk Plastic Solutions GmbH, Plant Koengen. The plant is a major supplier of components to Daimler, VW Group, Renault, PSA and GM.