The Automotive Component Manufacturers Association of India (ACMA) today said it expects the growth rate of the industry to slow down to 12-15% in the current financial year.
"The first quarter of 2011-12 witnessed some slowdown in vehicle consumption in India and this seems to suggest the growth in the auto component industry in the current fiscal will be in the range of 12-15%," ACMA President Sri Vats Ram told reporters here.
The component industry had witnessed a growth of 34% last fiscal, taking its total turnover to $39.9 billion, he added.
On capacity addition, Ram said: "We are expecting about $3 billion investment during this fiscal to enhance capacity."
The auto component industry spent about $2 billion to $2.5 billion on several greenfield and brownfield capacity addition projects in 2010-11, he added.