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| 'Share of Chinese auto-parts in Indian mkt to reach $6.85 bn' |
| Press Trust of India / New Delhi Mar 07, 2010, 16:22 IST |
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The share of auto parts imported from China in the domestic market is expected to increase by 12-fold and would reach to $6.85 billion (over Rs 30,000 crore) by 2012-13, industry chamber Ficci said in a report.
In 2008-09, China's share in the domestic auto component market stood at $544.6 million (about Rs 2,500 crore).
"Import of auto parts from China have been rising at an alarming rate of 88 per cent annually...With this growth rate, Chinese share in our domestic auto parts market would increase from 2.7 per cent to 15.6 per cent by 2012-13," it said.
The total import of auto parts have increased to Rs 27,355 crore in 2008-09 from Rs 9,604 crore in 2004-05.
The report said that if the current rate of growth in the import continues, the share of the imported products in the domestic market will increase to 42 per cent by 2013-14.
Currently, the share of imported auto parts across the globe in the local market is about 33 per cent.
It said that the share of the imports would increase further on account of reduction of customs duty on several auto parts under free trade pacts with the ASEAN and South Korea.
In order to ensure orderly development of domestic auto- component industry in view of the growing challenges from various free trade pacts, Ficci asked the government to give fiscal incentives to promote production of critical and high value added components.
It also sought creation funds - Automotive Development Fund (ADF) and Industrial Adjustment Fund (IAF)- on the lines of similar funds given in Malaysia.
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