This will be done in order to meet the growing demand
The Indian automotive component makers are planning to invest USD 30 billion by 2020. The reason behind this investment is to increase the production capacity so that they may keep pace with the constantly growing auto market, said a report.
The Indian component makers have also made an announcement that injection mold companies they expect to have a total revenue of USD 25 billion for the present fiscal. According to the estimates of ACMA (Automotive Component Manufacturers Association of India), the auto sector reported a total sales of around USD 22 billion in the year 2009-10. Out of these total sales, the exports contributed approximately USD 3.8 billion. Vinnie Mehta, executive director at ACMA was quoted saying that the market is consistently growing with the local players trying to cope up with the buoyant domestic demand. Export orders are positive and ACMA is looking at free trade agreements (FTA) with countries like Brazil, South Africa and Iran which could be a ready market for India-made products.
Presently, ACMA is giving attention on the safeguarding measures from the government against cheap imports of finished parts, especially those from China. The association also said that the component imports grew 20 per cent last fiscal to USD 8.2 billion. While the reason behind this was the record sales in passenger cars and two-wheelers, the demand has also been increased with the Indian automobile industry giving its best ever monthly sales in July which included the total vehicle sales growing 32 per cent to 12.4 lakh units. ACMA President Jayant Davar said that this is an alarming situation and it is not good for the domestic industry. They are engaged in a discussion with the government for some safeguard measures such as anti-dumping duty. ACMA has also expressed its plan for investing USD 3 billion every year for the next decade. This will be done in order to meet the growing demand.
