Pointing out that the sector would grow three-folds from the current $45 billion to $145 billion by 2015-2016, Automobile Components Manufacturing Association of India (Acma) President Jayant Davar said the sector will produce about three million cars (minus Tata Nano) pre-year by 2015 growing from less than 2 million cars it currently produces.
Similarly, the value of exports from India is also set to grow from $4 billion to $20 billion, while the sector is also projected to hike its yearly investment to $1.5 billion to $2 billion from $0.5 billion. Following this, Indian auto component sector is seen growing to $40 billion-$45 billion from the current $20 billion in terms of output.
Likewise, Aspen Institute India President Tarun Das said increasing per capita income leading to more and more rural population becoming part of mainstream economy among other things, will also spur demand in the domestic market helping the sector grow.
Meanwhile, small cars being the trend world over now, experts said they see no reason why, India, which has already began moving in this direction cannot become the global hub for small car manufacturing. Pointing out that India has exported about 4,00,000 small cars in the previous year, they said there is enough scope for achieving growth in the coming years. Davar said “There are different reasons that are driving this particular trend. While cheap pricing is the strongest factor in emerging countries, the desire to save fuel and reduce carbon emission are strongest in developed nations. In either of the cases, there is demand for small cars and as we see it from the industry, India has enough potential to cash in on this.”
