The country’s auto component industry is hopeful that its growth of exports will bounce back to more than 12 percent from six percent during the period of April-July.

This has become possible due to the appreciation of the dollar. However, it faces a big confrontation from inexpensive Chinese products. 

The sector has witnessed a growth of over 30 percent in the last 3-4 years. However, it was observing tough times due to the depreciating dollar and low demands in the two wheeler industry. According to Automotive Component Manufacturers of India (ACMA), the auto component sector would see exports of up to 20 billion dollars by 2016.

However, for this, the growth rate needed is around 30 percent on a continuous basis. According to Mr. Vishnu Mathur, ACMA executive director, people are asking the industry to supply goods to them at rates equivalent to Chinese prices, else they will purchase from the Chinese markets.

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Posted by Naresh Koshti on 27 August, 2008 2:28:21 PM IST #