Auto component industry body ACMA is targeting a nearly three-fold jump in the turnover of the sector to touch $100 billion by 2020, mainly driven by focus on high-quality products and low-cost manufacturing.
"We expect the Indian auto component industry to touch $100 billion turnover by 2020. The goal is little ambitious but we have full faith in the industry to achieve this target," Automotive Component Manufacturers Association (ACMA) President Ramesh Suri told PTI.
The auto component industry in India is currently pegged at $35 billion, with over $10 billion coming from exports, he added.
"It is an achievable goal as our manufacturing now conforms to global standards. Also, the relatively low-cost of production gives us an edge to grow," Suri said.
Moreover, with India all set to become a global export hub for small and medium segment cars, auto component industry is also expected to benefit, he added.
When asked about the challenges faced by the industry, Suri said: "There is huge problem of spurious spare parts. There should be a proper verification of auto parts so that this problem could be contained."
Besides, there is a need for active campaign for genuine spare parts as many people die in accidents due to the malfunction of spurious parts in the vehicles, he added.
Commenting on the growth of industry in the next fiscal, Suri said: "We expect auto component industry to grow in single digit in the next fiscal, while the exports would grow in double digit during the period."
Suri was speaking on the sidelines of the inaugural day of ACMA Automechanica, where over 400 auto component makers from 16 countries are participating to showcase their latest products here in the Capital.