'Auto components growth to remain flat for the rest of fiscal'

Company said that while there would be growth in specific segments like the two wheelers and farm tractors, sectors like the commercial vehicles, passenger cars

The automobile component manufacturing industry in the country is expected to remain flat in terms of business growth for the rest of the fiscal owing to the current market situation, said Automotive Component Manufacturers Association of India (ACMA), the nodal agency for the Indian auto component industry.

“Overall, the growth would be flat this year,” said Harish Lakshman, president, ACMA.

The industry in 2012-13 saw $ 40 billion sales as against $ 41 billion during the previous year. Exports in 2012-13 were at $10 billion while imports stood at around $13 billion. Almost 80 per cent of the exports was to the global original equipment manufacturers (OEMs).

Lakshman said the current year would be one of the most challenging. However, according to him, the long-term growth story of the industry was intact. Speaking about industry relations between Indian and Japanese automobile sectors, he said the industry had to work with Japanese companies to start a long-term relationship.

In 2012, the imports of auto components from Japan to India was of $1.8 billion, while the Indian exports to Japan in the same sector was of $200 million. The association is expecting that the industry could work closely with the Japanese supply chain to build a relationship, thereby improving the business with Japan in future.

 

In order to support the small and medium entreprises (SME) in the tough market scenario, the association is also conducting technology cluster programmes to equip them on managing cost better. The first such initiative started recently in Jamshedpur and plans are to start the programme in other parts of the country including Chennai. 

 

The Rs 2 lakh would be the investment into the programme, which is partly funded by the United Nations Industrial Development Organization (UNIDO), said Vinnie Mehta, executive director, ACMA. At Jamshedpur, which is not a major hub for automobile components industry, eight small comapanies have joined the programme.

 

"We have set an aggressive target to provide training to 400 companies in next three years," he said. The association would be providing training to small companies with turnover of Rs 15 crore or below.