The auto component industry registered a 2 per cent drop in turnover at Rs.2.12-lakh crore ($35.13 billion) for the year ended March 2014, Auto Component Manufacturers Association (ACMA) said on Thursday. However, the industry is pinning hopes on revival in the auto industry to overcome a decline of the last two years and expects to post 4-6 per cent growth in 2014-15. The industry had posted a turnover of Rs.2.16-lakh crore in 2012-13.
“The last fiscal has been one of the most challenging for the automotive industry in India with flagging vehicle sales, high capital costs, high interest rates and currency fluctuations adversely impacting the growth,” ACMA President Harish Lakshman told reporters here. He said due to moderation in vehicle sales and depressed market sentiments, the investment in the industry declined to about $500-700 million in 2013-14, from $1.2-1.7 billion in the previous fiscal.
While this year investments are expected to remain flat or slightly better, the industry is hopeful of an up-tick in investments from 2015-16.
As per the data released by the industry body, exports of auto components grew by 16.7 per cent to Rs.61,487 crore from Rs.52,690 crore.
Mr. Lakshman said the industry needed to diversify into other sectors as well to minimise risk factor.
