The Indian auto component industry is expected to draw more than half of its turnover from exports by 2016 on the back of enhanced research and development activities coupled with high sourcing targets by global OEM from India. Thanks to the burgeoning Indian automobile space. Currently, the total turnover of the auto component industry (members of ACMA) stands at around $ 20 billion, which the industry association expects to double to $ 40 billion by 2016.
?Considering the kind of sourcing plans the global OEMs like Fiat, VW, GM, to name a few have announced from India and the R&D activities taking place, we see the exports making 50% of the turnover of the industry,? said Jayant Davar, president, ACMA. In a bid to make up to the standards of the global OEMs, Davar added that the industry players will look at tie-ups, joint ventures and also consolidation to prepare themselves for the competitive days ahead.
?Except for the electronics where the Indian auto component makers stand weak, the industry is maturing from the early days of just forging and castings,? Davar said. Earlier the auto component industry was focusing more on the aftermarket sales abroad than the direct sale of the OEMs. ?This has also seen a gradual shift with maximum exports targeted to direct OEM sale,? he said. The total investment made by the industry is around $ 9 billion now which will go up to $ 20 billion by 2016.