With the automobile segment growing manifold, auto component and ancillary industry are expected to grow by 15-20 per cent year-on-year in the next five years.
The growth will be prompted due to the current buoyancy in the Indian automotive sector as well as major investment and expansion plans of automotive manufacturers globally. Auto component and ancillary sector exhibitors at the ninth Auto Expo were optimistic that with a direct participation of over 40 vehicle manufacturers from over 25 countries, the event has provided them an exclusive platform to demonstrate the quality and technological capabilities to potential buyers both domestic and international. With all the outsourcing opportunities available for the component manufacturers, there seems to be no looking back.
The total size of the Indian auto component industry is $ 14 billion., of which two billion is contributed by direct export of components. The world production of auto components is expected to reach 107 trillion dollars by 2015. It is estimated that about $700 billion worth of auto components will be sourced out from low cost counties (LCCs) in the next 7-8 years. If India aims to capture a 10 per cent share of this potential, it would mean nearly five times of the current size of the industry in India, giving a huge business opportunity for the Indian auto component and ancillary industry.
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| Posted : 2/27/2008 |
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