India’s auto component industry can potentially grow fivefold to reach over US$110bn by 2020, the Automotive Component Manufacturers Association of India said on Friday.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The ACMA, an apex body of India’s auto component manufacturing industry, made the projection in a document titled Vision 2020, which was released at its 50th annual session.
The document said the Indian auto component industry can potentially top $110bn by 2020 driven in tandem with the surge in vehicle production in the country. Of the total, the domestic demand would account for $80 billion, it said.
”The auto component industry thus can be the engine of India’s economic and manufacturing sector growth, potentially contributing 3.6% of gross domestic product by 2020,” the report said, according to Kyodo News.
In order to achieve this target, the auto component industry would require investments of over $35bn during the same period, the trade body said. It said the target will also generate employment opportunities for over 1m skilled workers.
