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.

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.