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Auto components industry must aspire for 5% of global trade share in next 5 years: ACMA

29 Jun 2020 Evaluate

Automotive Component Manufacturers Association of India (ACMA) Director General Vinnie Mehta has said that the auto components industry in India should look at enhancing exports and aspire for at least 5 percent of the global trade share in the next five years. He noted that the global trade in auto components is $1.3 trillion and the Indian auto component industry has a minuscule share of 1.3 percent.

For achieving 5 percent of global trade target, Mehta said the government support in terms of favourable policies would be crucial. He pointed out that support from the government would act as a catalyst for business growth as well as help the industry become self-reliant. He added that while the industry will have to deliver technologically relevant, globally price-competitive products with consistent quality, the government will have to ensure ease of doing business in its true sense and to overcome disabilities of capital logistics and energy.

Currently, the Indian auto component industry exports 25 percent of its production -- $15.1 billion, with the US and the EU accounting for 65 percent of exports. Besides, in 2018-19, the Indian auto component industry's revenue stood at $57 billion, contributing 2.3 percent to the country's gross domestic product (GDP). In comparison, turnover of Chinese auto component industry stood at $550 billion last year.


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