Indian auto component industry is expected to grow in the range of 10-12 per cent in the current fiscal on hopes of above-normal monsoon and recovery in the domestic automobile market, according to industry body ACMA.
In the last fiscal, the auto component industry's turnover grew by 8.8 per cent to Rs 2.55 lakh crore as against Rs 2.34 lakh crore in 2014-15.
"In the first two months of this fiscal trends have been positive. With prospects of a good monsoon, we expect the growth during this fiscal to be better then the previous one.
"Last year, we grew by 8-9 per cent and we expect to grow in the range of 10-12 per cent this fiscal," Automotive Component Manufacturers Association of India (ACMA) President Arvind Balaji told reporters here.
The global markets continue to be slow but the domestic industry is showing signs of recovery, he added.
Commenting on the last fiscal, Balaji said: "Despite a challenging year, the auto component industry has registered a satisfactory growth of 8.8 per cent. Further, while overall exports from India witnessed a decline of 9.58 per cent, the Indian auto component exports grew by 3.5 per cent."
Exports grew to Rs 70,900 crore last fiscal from Rs 68,500 crore in 2014-15. Europe accounted for 36 per cent of the total exports followed by Asia and North America, 25 per cent each.
Shipments to Central America and North America increased by 30 per cent and 3 per cent, respectively, over the 2014-15 fiscal.
The key export items included engine parts, transmission parts, brake system, body parts, exhaust systems and turbochargers.
On imports, Balaji said China continued to be major country from where components are imported to India.
"Yes, it is a challenge. There (in China), the government supports exports and we are also talking to our government to provide us a level playing field in terms of trade policy," he added.
Last fiscal, the component industry invested in the range of Rs 2,700-Rs 4,000 crore compared with Rs 2,000-Rs 2,800 crore in 2014-15.
"The enhancement in investment can be attributed to better business prospects owing to improving market sentiments," ACMA Director General Vinnie Mehta said.