Automotive Component Manufacturers Association (ACMA) has projected that the Indian auto component sector will expand by 8 to 10 per cent in fiscal 2013 against 15.7 per cent growth recorded in the corresponding period of last year. In fiscal 2012, the segment posted a turnover of Rs. 2,10,400 crore.
For the financial year 2012, in ‘Industry Performance Review’ ACMA said that the investments in this sector reduced to around $ 1.6-1.9 billion, when compared to $ 2-2.5 billion recorded in year ago period. The reason for fall was cited as lower market sentiments and moderation in the sales of vehicles. In a statement, ACMA said, “The turnover of the auto component industry stood at Rs. 2,10,400 crore ($ 43.4 billion) for the period April 2011 to March 2012, registering a growth of 15.7 per cent (in rupee terms) over the previous year.”
It further added, “While the uncertainty in the domestic market continues, ACMA is optimistic that the medium and long-term prospects of the component industry are intact. However, in the current fiscal 2012-13, the industry is expected to grow in the range of 8-10 per cent.”
Expressing his views on the review, the President of ACMA, Surinder Kanwar said, “Ambiguity in the fuel price regime, high cost of capital, high interest rates and slowing down of investment in infrastructure is adversely impacting the growth of the automotive industry.”
The Vice President of ACMA, Harish Lakshman further said that the auto component industry is quite ambitious for achieving the aim of $ 115 billion before the end of 2020. He added, “The government policies pertaining to tax regimes, FTAs and infrastructure development need to be relooked for the overall growth of the auto component industry.”
In fiscal 2012, the exports of auto components expanded by 32.7 per cent amounting to $ 6.9 billion from $ 5.2 billion recorded in year ago period. Among the above mentioned figures, Asia accounted for 28 per cent of the entire exports, whereas Europe and North America stood at 36 per cent and 23 per cent, respectively.
During the period, the imports of auto components stood at $ 10.6 billion, which marked an increase of 25 per cent under the review of $ 8.5 billion imported in fiscal 2011. In the last fiscal, around 85 per cent of the entire imports were dedicated to the Original Equipment Manufacturers (OEMs) and the remaining 15 per cent was delivered to the aftermarket.
