Strong exports help auto component industry raise revenue by 11 per cent

The domestic auto component industry saw revenue grow 11 per cent in 2014-15 to Rs 2.34 lakh crore, helped by various cost cutting initiatives and a strong growth in exports, according to figures released on Tuesday by the Automotive Component Manufacturers Association of India (ACMA).

The auto component saw exports grow at 11 per cent to Rs 61,400 crore during the year compared to 7.5 per cent growth in imports, which grew from Rs 77,160 crore to Rs 82,900 crore during the year.

Europe accounted for 37 per cent of exports followed by Asia (25.2 per cent) and North America (23.2 per cent). The sector saw an estimated investment of Rs 1,980-2,767 crore during the year, against Rs 3,400-4,400 crore investment previous year. The drop in investment was mainly on account of moderation in vehicle sales, the industry body said.

Despite recent subdued growth in auto sales, ACMA believes the auto component industry would continue to grow. "The industry is expected to touch Rs 6 lakh crore turnover by 2020," said Vinnie Mehta, director general, ACMA.