Don’t miss the latest developments in business and finance.

Auto components industry grows by 14% to about Rs 3 lakh crore

The market segment was 'a silver lining' growing at 25.6 per cent

Image
Press Trust of India New Delhi
Last Updated : Aug 31 2017 | 2:03 PM IST
The Indian auto components industry expanded by 14.3 per cent to Rs 2.92 lakh crore last fiscal on the back of robust growth in after market sales.

According to the latest data by Automotive Component Manufacturers Association of India (ACMA), the after market segment grew by 25.6 per cent to Rs 56,096 crore last fiscal from Rs 44,660 crore in the preceding year.

Exports in 2016-17 were at Rs 73,128 crore as against Rs 70,916 crore in the previous year, up 3.1 per cent. Imports decreased by 0.1 per cent to Rs 90,662 crore last fiscal as against Rs 90,571 in 2015-16.

More From This Section

ACMA President Rattan Kapur said: "Despite the challenges of demonetisation and uncertainty in implementation of GST, vehicle production remained buoyant. In this backdrop, the auto component industry posted an encouraging performance."

He said the after the market segment was "a silver lining" growing 25.6 per cent.

On the outlook, Kapur said: "We believe that a technological transformation of the automotive industry is imminent, which calls upon the component industry to invest in R&D, create intellectual property, acquire and develop relevant technologies at a much faster pace to remain relevant for future needs."

Expressing similar views, ACMA Director General Vinnie Mehta said that at this juncture the industry is preparing for graduating from BS-IV to BS-IV by 2020.

"Leapfrogging a generation of technology in just three years not only calls for sizeable investments for technology acquisition and absorption, but also for skilling of people."

In terms of auto components supply distribution to automobile manufacturers, ACMA said 49 per cent was to passenger vehicles, 22 per cent to two-wheelers, 11 per cent to medium and heavy commercial vehicles, 8 per cent to light commercial vehicles, 6 per cent to tractors, 2 per cent to three-wheelers and another 2 per cent to backhoe loaders.

Also Read

First Published: Aug 31 2017 | 2:00 PM IST

Next Story