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The auto components industry recorded a turnover of ₹2.55 lakh crore during 2015-16, up 8.8 per cent from ₹2.34 lakh crore in the previous year. It registered a compounded annual growth rate of 6 per cent over the last six years.
According to the latest industry performance review by Automotive Component Manufacturers Association of India (ACMA), components exports grew 3.5 per cent to ₹70,900 crore from ₹68,500 crore in 2014-15. Capital investment last year was ₹2,700-4,000 crore, compared with ₹2,000-2,800 crore in 2014-15.
“With signs of recovery in the auto market in the country and prospects of a better monsoon, the component sector is expected to witness growth in early double-digits this year,” said ACMA President Arvind Balaji.
However, imports are still a concern, especially from China, and the industry would have to see what the Centre is doing on that front, he said.
Imports of components increased 9.3 per cent to ₹90,600 crore in 2015-16 from₹82,900 crore the previous year.
Balaji said though the Centre is doing a lot for the industry, it has to look at some tax issues around components import.
“There is an inverted tax regime; while there is a minimal tax on import of components, the import tax on raw materials is much higher. So either they raise duty on import of components or lower the rates on raw materials,” he said, adding that only that would Make in India a successful programme.
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