Auto Component Biz Growth To Slow Down During 2011-12

(08/31/2011)(Tehelkanews)

Automotive Component Manufacturers Association of India stated that Indian auto component business is anticipating a slump in growth to 12-15% during the existing financial year (2011-12) from over 34% during the last fiscal year.In spite of this deceleration, the business is expected to witness an investmentof around $3 billion during the fiscal to augment capacitances acrossIndia.Automotive Component Manufacturers Association (ACMA) President Srivats Ramsaid, \"The first quarter of 2011-12 witnessed some slowdown in vehicle consumption in India and this seems to suggest the growth in the auto component industry in the current fiscal will be in the range of 12-15%.\"

The component business saw an augmentation of 34.2% during 2010-11, taking its overall revenue to $ 39.9 billion.But, he said that ACMA is very confident on the market recital in the long-term as it is anticipating a compound yearly growth speed of 14% for the coming 3-5 years.When asked about the investment the components player may put in in this fiscal, Ram responded, \"We are expecting about USD 3 billion investment during this fiscal to enhance capacity.\"The auto component business had invested $2-2.25 billion on various greenfield and brownfield capacity addition projects during the last financial year.

On Duty Entitlement Passbook Scheme (DEPB), that incentivises exports through tax rebates, Ram said: \"It is a very useful scheme for us. As there is no alternative and given the global market condition, we want the validity of the DEPB scheme to be extended beyond September this year\".


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