NEW DELHI: The Indian automotive sector is expected to get back in full gear as the festive season is just round the corner. Reports suggest that the demand for auto components like transmission and steering, suspension and braking, engine and exhaust, electronics and electricals, body and structural parts would reach $100.4 billion soon.
The small and medium enterprises (SMEs) engaged in the Indian auto component sector have high hopes that the demand will gain momentum in the near future.
While speaking to SME News about the performance of the Indian auto component sector, Vikram Singh Solanki, manager of Bluestar International Fastner, said, “The demand for auto components in India has been stable and in the coming months, we are hopeful that it will gain further speed. In fact, the demand for Indian auto components is quite huge not just in domestic market but also at the international level.”
Anil Ambardekar, Director of Trinity Auto Engineering Private Limited, said, “The auto component players enjoy good prospects due to the consistent stability in demand. According to me, the sector should register considerable growth in the future.”
The Indian auto market has witnessed the heat of slowdown in the last few months due to reasons such as hike in taxes and rising fuel prices. It is believed that with the jump in consumers’ disposable income, the desire to own a new car will also pick up pace in India. Reports suggest that light vehicle sales such as cars, sport utility vehicles and light trucks, will jump to 11 million units by 2020 as compared to 2.7 million units in 2010.
Many foreign players have high hopes from the Indian auto market and it is also driving many of them to invest here for strengthening production. According to IKS survey, part of the report titled 'Indian Auto Component Sector', about 44.1% SMEs in auto component sector are hoping to register improvement in sales due to the jump in demand. The survey has been done by IKS to display the market trends and sentiments of SMEs players engaged in the auto component sector.
The online B2B demand for auto component products is one of the highest and also finds place among the top 20 sectors in the online B2B industry, said IKS report.
Solanki also added, “Many foreign car manufacturers are strengthening their production level in India to boost raise their market share. This is benefiting the auto component players in India as many of these auto majors are sourcing components from small players.”
As the auto component sector is hopeful of clocking considerable growth in the near future, the Indian economy is expected to break the shackles of global downturn hitting growth.