Exports of auto component to grow 15-20 pc in FY13

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SME Times News Bureau | 06 Sep, 2012
Despite tough market conditions in global market, export of auto components is likely to register a healthy growth of 15-20 percent in current fiscal, industry body Automotive Component Manufacturers Association of India (ACMA) said Wednesday.

"In 2012-13 the domestic auto component industry is expected to witness a growth of 8-10 percent, while exports are likely to increase by 15-20 percent," said Vinnie Mehta, Executive Director ACMA.

Speaking at the annual convention of the body in New Delhi on Wednesday, he said in 2011-12, the component industry had a revenue of USD 43.5 billion, while exports stood at USD 7 billion.

"Imports by the component industry was at USD 10.25 billion dollars, while investment of USD 1.6-1.9 billion was made in the last fiscal," Mehta said.

ACMA, the apex body of the Auto Component Industry in India, hosted its 52nd Annual Session & National Conference on the theme 'Auto Component Industry - Ready for The Transition'.

The Annual Session was inaugurated by Praful Patel, Union Minister of Heavy Industries & Public Enterprises, Government of India.

Speaking at the inaugural session Patel said, "As per the 12th Five Year Plan, the ministry is reviewing targets set up under the Automotive Mission Plan 2006-16. The extrapolations that have been drawn clearly indicate that the output of the automobile & auto component industry would reach USD 145 billion by 2016, accounting for more than 10% of the country’s GDP and in turn generate employment for more than a million people."

He further suggested that to be globally competitive it is essential for the Indian auto component industry to move up the value chain and to innovate and invest in product and process improvement through meaningful R&D.

Arvind Kapur, President ACMA & Managing Director, Rico Auto Industries Ltd said, "There is a symbiotic connect between the growth of automobile & auto component industry and the economy. The Indian economy is experiencing not just an ordinary slowdown but a sharp downturn in investment cycle, domestic policy paralysis and uncertain trade environment. However, one must not forget that underpenetrated markets and the unfulfilled mobility aspiration of the people of India, are the sliver lining that gives us the confidence of a steady growth trajectory."

"To be truly globally competitive, our relationship with our customers must transcend from being transactional to a mutually beneficial one. Neither build-to-print nor operational excellence is enough to be globally competitive. We have to partner with the OEMs in Design, Development and Testing and build affordable, innovative solutions," added Kapur.