After an improved showing by vehicle industry, Auto component industry too has come back to growth ways. The apex body representing auto parts makers, Auto Component Manufacturing Association of India (ACMA) announced on Tuesday that the industry reported a 11 percent growth in Financial year 2014-15, to reach a turnover of Rs 2.34 lakh crore up from Rs 2.11 lakh crore last year. This comes after a 2.1 percent de-growth in FY13-14.
The industry also reported an 11.4 percent growth in export, reaching Rs 68,500 crore during the fiscal year. In FY2013-14, the exports stood at Rs 61,400 crore.
Despite a challenging year 2013-14, the auto component industry bounced back registering an impressive growth of 11 percent," said Ramesh Suri, president ACMA. "In fact, it is also interesting to note that while India's export stagnated, the auto component industry's exports grew by 11.4 percent."
In exports, Europe accounted for 36.9 percent, followed by Asia at 25.2 percent and North America at 23.3 percent. Exports to Africa, Latin America and North America increased by 12.6 percent, 4.6 percent and 18.9 percent respectively.
However, despite the improved market conditions, the capital investment continued its downward trend. In FY2014-15, auto component industry made a capital investment of $300-400 million, as compared to $500- $700 million.
Imports continue to remain high and it grew by 7.5 percent to Rs 82,900 crore, which is still higher than overall exports.