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Indian auto component industry grows by 8.8% in FY16 to Rs 2.55 lakh crore

Economic Times:  June, 2016

New Delhi: 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.

Arvind Balaji, president, Automotive Component Manufacturers Association (ACMA), said, "Despite a challenging year, the auto component industry has registered a satisfactory growth of 8.8% in FY16. 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.

Investments in the auto component sector during 2014-15 stood at around $ 0.44-0.66 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.