The Indian auto component industry only expects to clock a growth of 12-15 per cent this financial year — a big dip from the 34 per cent growth it saw in FY 2010-2011.

According to the Automotive Component Manufacturers Association of India (ACMA), the slowdown in vehicle consumption could impact the growth rate of the component industry this fiscal.

In 2010-2011, the industry had recorded a turnover of Rs 182,127 crore.

Commenting on the industry performance, the ACMA President, Mr Sri Vats Ram, said: “The exports have shown signs of recovery in North America, Western Europe and Asian markets, growing 54 per cent over last year to touch $5.2 billion. Imports crossed $ 8.5 billion, growing 30 per cent over last fiscal.”

“The reason for buoyant exports is the recovery post 2008-10 dip, inventory destocking and upswing in cyclical segments like commercial vehicles in the US,’’ he said.

Key location for imports were China, South Korea, Thailand, Germany, Italy and Czech Republic. In 2010-11, 85 per cent of the imports were accounted by OEMs and 15 per cent by the after market.

On capacity addition, he said: “We are expecting about $3-billion investment during this fiscal to enhance capacity.’’

The industry spent about $2 billion to $2.5 billion on several greenfield and brownfield capacity addition projects in 2010-11.

On the ongoing labour problems, Mr Arvind Kapur, ACMA Vice-President, said: “The industry is planning to add another two million workers in the next couple of years. We want more flexibility with labour, as also a better engagement with the workforce.”

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