Indian automotive component makers plan to invest $30 billion by 2020 to ramp up production capacity as they try to keep pace with a fast growing auto market.
Indian component makers clocked total revenue of $25 billion for the year ended March 2010 out of which exports contributed approximately $3.8 billion, as per estimates made by the industry body Automotive Component Manufacturers Association of India (ACMA).
“The market is consistently growing with the local players trying to cope up with the buoyant domestic demand. Export orders are positive and we are looking at free trade agreements (FTA) with Brazil, South Africa and Iran which could be a ready market for India-made products,” said Vinnie Mehta executive director at ACMA.
ACMA is also seeking safeguard measures from the government against cheap imports of finished parts, primarily from China. Component imports grew 20 per cent last fiscal to $8.2 billion. While this was driven by record sales in passenger car and two-wheelers, demand has gained further momentum as Indian automobile industry posted its best ever monthly sales in July with total vehicle sales growing 32 per cent to 12.4 lakh units.