Indian auto component industry is expecting a slowdown in growth to 12-15 per cent in 2011-12 from over 34 per cent in the previous fiscal, Automotive Component Manufacturers Association of India said on Tuesday.
Notwithstanding this slowdown, the industry is likely to see an investment of about USD 3 billion during the fiscal to enhance capacities across the country.
"The first quarter of 2011-12 witnessed some slowdown in vehicle consumption in India and this seems to suggest the growth in the auto component industry in the current fiscal will be in the range of 12-15 per cent," Automotive Component Manufacturers Association (ACMA) President Srivats Ram told reporters in New Delhi.
The component industry had witnessed a growth of 34.2 per cent in last fiscal, taking its total turnover to USD 39.9 billion (about Rs 1,82,127 crore), he added.
"The exports also grew at a very healthy rate of 54 per cent to USD 5.2 billion (last fiscal). Looking at the US and Europe, this rate is also expected to come down to around 20-25 per cent," Ram said.
He, however, said ACMA is very bullish on the market performance in the long-term as it is expecting a compound annual growth rate of 14 per cent for the next 3-5