Auto component industry registers growth of 8.8 per cent in FY 2015-16

New Delhi, June 18 (KNN) Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s Auto Component manufacturing industry, has announced that the turnover of the auto component industry stood at Rs. 2.55 lakh crore for the period April 2015 to March 2016, registering a growth of 8.8 per cent over the previous year and a CAGR of 6 per cent over the last six years.

Commenting on the performance of the auto component industry, Arvind Balaji, President, ACMA said, “Despite a challenging year, the auto component industry has registered a satisfactory growth of 8.8 per cent in 2015-16. Further, while overall exports from India witnessed de-growth of 9.58 per cent, the Indian auto component industry exports grew by 3.5 per cent. With signs of recovery in the auto market in the country and prospects of a better monsoon, the component sector is expected to witness growth in early double digits this year.”

Vinnie Mehta, Director General, ACMA commented, “The performance of auto component industry in FY 2015-16 has been satisfactory.  This is despite a less than expected performance in the Passenger Vehicles, Two-wheelers and Tractors segments. With the ‘Make in India’ initiative and thrust on increased localisation by OEMs, the component industry is actively focussing on delivering enhanced quality products, as well as, on R&D and innovation.”

However, imports of auto components grew by 9.3 per cent to Rs 90,600 crore in 2015-16 from Rs 82,900 crore in 2014-15; Asia and Europe contributed to 58.6 per cent and 30.9 per cent of the imports respectively.

Whereas exports of auto components grew by 3.5 per cent to Rs 70,900 crore  from Rs 68,500 crore in 2014-15, registering a CAGR of 18 percent in the last six years. Europe accounted for 36 per cent of exports followed by Asia and North America, each at 25 per cent. Exports to Central America and North America increased by 30 per cent and 3 per cent respectively, over the previous fiscal. The key export items included engine parts, transmission parts, brake system & components, body parts, exhaust systems, turbochargers etc. (KNN Bureau)