India auto component industry is bullish on India's auto growth story. Calling the slowdown a temporary glitch, it is confident that the industry will bounce back, despite rising interest rates and fuel costs, reports CNBC-TV18's Swati Khandelwal Jain.
India auto component industry is bullish on India's auto growth story. Calling the slowdown a temporary glitch, it is confident that the industry will bounce back, despite rising interest rates and fuel costs, reports CNBC-TV18’s Swati Khandelwal Jain.
An optimistic view is coming in from the Auto Component Manufacturers' Association (ACMA) at their annual convention programme. Most of them are of the view that the slowdown witnessed in the automotive sector is a temporary phenomenon, it will be resolved.
They are pegging a growth rate of about 10-15% by the end of this fiscal. None of them are holding back investments or expansion plans. Infact they are pumping in more money.
Baba Kalyani, CMD of Bharat Forge says, “There are some challenges in the overall economy like inflation, hardening interest rates. But India is still growing at 7.5-8% a year. So, irrespective of what happens by 2020, if you look at the automotive sector, there will be ten million vehicles produced.”
Surinder Kapoor, CMD of Sona Koyo , “This is a temporary blip. We will have to ride through this. This slowdown yes, it exists. If you ask me, if the industries perturbed about it, from a whole year perspective, I don’t believe so.
Ramesh Suri, founder and chairman, Subros says, “There is a little slowdown. But definitely we are going ahead with our plan. All the industry is going ahead with it, no one is going backwards.
Last year, the turnover was about USD 40 billion. The industry grew by almost 34%. Investments were about USD 2-2.5 billion. But this time around the exports are expected to be in the range of 20-30% and investments are expected to be higher than last year at about USD 3 billion. The companies are looking at exports markets in a big way.
READ MORE ON auto, India, Swati Khandelwal Jain, CNBC-TV18, Auto Component Manufacturers' Association, Bharat Forge, Baba Kalyani, Sona Koyo, Surinder Kapoor, Subros, Ramesh Suri
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