New Delhi, Dec 20 (KNN) India’s auto component industry is considering to invest about USD 6.5 to 7 billion over the next five years on capacity expansion and technology upgradation, with the demand expected to remain robust over the period.

The industry, which recorded a 12.6 per cent year-on-year revenue growth in the first half (April-September) of the current fiscal at Rs 2.98 lakh crore, expects double digit sales growth to continue in the rest of the current fiscal and in the upcoming financial year as well.

Addressing the media, Automotive Component Manufacturers Association of India (ACMA) President Shradha Suri Marwah said, “The components industry continues to make investments for purposes of higher value-addition, technology upgradation, and localisation to stay relevant to both domestic and international customers.”

“The industry is looking to invest USD 6.5-7 billion capex over the next five years as compared to USD 3.5-4 billion spent in the last five years,” she added.

“Going forward, considering the festive season has gone well with significant sales across most segments of the vehicle industry, I am optimistic that the current fiscal year will witness another good performance from the auto components sector,” Marwah noted.

With vehicle sales across all segments reaching pre-pandemic levels and with mitigation of supply-side issues witnessed during the pandemic such as availability of semiconductors, high input raw-material costs and non-availability of containers, the auto components sector witnessed a steady growth in both domestic and the international markets in the first-half of FY2023-24, she said.

(KNN Bureau)