Since the last few years, Indian automobile industry has grown at a tremendous pace, and currently the Indian automotive components industry is being projected to cross over US $ 110 billion (INR 5 lakh crore) worth business by the year 2020. This figure has been zeroed in after assessing the demands of vehicles, as it is in tandem with the country’s growth of vehicle production. According to the report by the Automotive Component Manufacturers’ Association (ACMA), out of all this, the domestic turnover is likely to grow up to US $ 80 billion (INR 4 lakh crore) and the exports would make up to another US $ 29 billion (INR 1.4 lakh crore).
According to that report, in the fiscal year 2010 – 2011, the turnover of auto components companies India will go beyond USD 26 billion, which is an 18 per cent rise from the previous fiscal year’s turnover, which was just USD 22 billion. Moreover, according to the ACMA-EY (Ernst & Young) Vision 2020 study, most probably, by the year 2020 India is going to witness massive growth in the vehicle production.
As far as Europe is concerned, it is likely to comprise a huge 36.9 per cent of India’s automotive parts export in 2010-11, which is then followed by the Asia and North America with 28.1 and 24 percent respectively. Apart from this, the automobile industry has witnessed major changes in the automobile purchasing strategy India over the few years. According to the recent study, in the financial year 2010 – 2011 India is expected to make USD 12 billion investments in the Indian automotive components industry. And, this might result in making the auto component industry, an engine for India’s massive growth in the economic as well as manufacturing segment.
Moreover, the Automotive Mission Plan (AMP) 2006 – 2016 will additionally stimulate the progress of the Indian auto components sector and can eventually transform India into an international player in the automotive industry. This plan aims to double the contribution of automobile industry in the country’s GDP and produce 25 million more jobs for people by 2016. Apart from this, there is an enormous potential and intensification opportunity in the automotive components industry and as a result various small medium enterprises which are into the manufacturing of automotive parts in India have also started to get good international exposure for their products. Moreover, out of those small and medium enterprises of automobile components and accessories, many of them have become the best auto parts supplier Chennai, Pune, Gurgaon.