Auto components sector to grow in high single digits this year: ACMA

Auto component makers' body expects domestic market to continue to be the bulk contributor to the business

The Indian auto component industry is cautiously optimistic about clocking a high single-digit growth this year as the automobile sector shows signs of recovery across segments.

After putting up a "successful" components show that ran simultaneously with the Auto Expo, industry body Auto Components Manufacturers Association of India (ACMA) expects the domestic market to continue to be the bulk contributor to the business even as it looks for an uptick in exports.

"For the components industry, it is starting to look a little positive. We are seeing signs of recovery. Passenger cars segment has shown growth while the commercial vehicles have come up well, although the rural market is a little bit depressed," ACMA President Arvind Balaji told PTI.

He also hoped that the early signs of growth in economic activity will result in more broad based growth.

When asked about growth expectations this year, Balaji said: "It is a little bit too early to say what growth will we clock. We will have to wait for the Bugdet before we put a number but it would be in high single digits."

The Indian auto-component segment currently stands at Rs 2.34 lakh crore ($38.5 billion) with exports at Rs 68,500 crore ($11.2 billion).

He said the domestic market will continue to be the major contributor for the component industry as exports contribute just about 30% to the total.

"Exports have been growing in the past few years although it is flat now but it will also continue to grow, specially keeping in mind the rupee factor as exporters will find good opportunity," Balaji added.

Commenting on the components show, he said, "We had a tremendous international participation, reflecting what everybody sees as potential of India... The amount of technology development that is happening in India is something that they were pleasantly surprised to see..."

The components show featured 1,500 exhibiting companies, out which 900 were Indian and the rest 600 international firms. There were also foreign contingents from 20 countries, with eight exclusive country pavilions from China, Canada, France, Germany, Japan, Taiwan, South Korea and the UK.

The previous show had 1,200 exhibiting companies with 750 Indian and 450 international participants.