New Delhi June 30 (IANS): Automotive Component Manufacturers Association of India (ACMA), the apex body representing the segment, on Tuesday said the total turnover of the industry grew by 11 percent at Rs.2.34 lakh crore during 2014-15.
For fiscal 2013-14, ACMA had reported a decline of 2 percent in the industry's turnover at 2.12 lakh crore. The CAGR over the last six years stood at 11 percent.
"Despite a challenging year 2013-14, the auto component industry bounced back registering an impressive growth of 11 percent in 2014-15. In fact, it is also interesting to note that while India's total exports stagnated, the Indian auto component industry exports grew by 11.4 percent," said association president Ramesh Suri.
He said consistent growth in the auto component exports is an indication of growing credibility of India made components.
According to the industry body, exports of auto components grew by 11.4 percent to Rs.68,500 crore ($ 11.2 billion) from Rs.61,400 crore in 2013-14, registering a CAGR of 29 percent in the last six years.
"Europe accounted for 36.9 percent of exports followed by Asia at 25.2 percent and North America at 23.2 percent. Exports to Africa, Latin America and North America increased by 12.6 percent, 4.6 percent and 18.9 percent respectively, over the previous fiscal year," it said.
It said the key export items include engine parts, transmission parts, brake system and components, body parts, exhaust systems, turbochargers and others.
During 2014-15, imports of auto components also grew by 7.5 percent to Rs.82,900 crore ($13.58 billion) from Rs.77,160 crore in 2013-14, and Asia and Europe contributed to 57.9 and 32.4 percent of the imports respectively followed by North America and Latin America.
An estimated capital investment of Rs.1,980 crore to Rs.2,767 crore was witnessed in the sector in the same time period.
ACMA said that due to moderation in vehicle sales and depressed market sentiments, investment in 2014-15 declined compared to the previous year.
"Capex in 2013-14 stood at around Rs.3,200 to Rs.4,400 crore," it said.
"The auto component industry in India is expected to scale $100 billion in turnover by 2020 with exports to grow in range of $35-40 billion," said ACMA director general Vinnie Mehta.
He said during the last fiscal, several macro headwinds obstructed the growth in the industry including flagging vehicle sales, high capital costs, high interest rates and slowing down of investment in manufacturing.