Auto component biz to invest $7 bn in 5 yrs to boost capacity, upgrade tech
The industry is looking to invest $6.5-7 billion capex over the next five years as compared to $3.5-4 billion spent in the last five years, she added.
Representative image.
NEW DELHI: The auto component industry is looking to invest around $6.5 to 7 billion over the next five years on capacity expansion and technology upgradation, with the demand expected to remain robust over the period.
The industry, which recorded a 12.6 per cent year-on-year revenue growth in the first half (April-September) of the current fiscal at Rs 2.98 lakh crore, expects double digit sales growth to continue in the rest of the current fiscal and in the upcoming financial year as well.
“The components industry continues to make investments for purposes of higher value-addition, technology upgradation, and localisation to stay relevant to both domestic and international customers,” Automotive Component Manufacturers Association of India (ACMA) President Shradha Suri Marwah told reporters.
The industry is looking to invest $6.5-7 billion capex over the next five years as compared to $3.5-4 billion spent in the last five years, she added.
With vehicle sales across all segments reaching pre-pandemic levels and with mitigation of supply-side issues witnessed during the pandemic such as availability of semiconductors, high input raw-material costs and non-availability of containers, the auto components sector witnessed a steady growth in both domestic and the international markets in the first-half of FY2023-24, she said. ACMA director general Vinnie Mehta said with vehicle sales and exports displaying steady performance, the auto component industry demonstrated a growth of 12.6 pc scaling a turnover of Rs 2.98 lakh crore ($36.1 bn) in the first half of FY 2023-24.