Auto component industry to grow up to 10 pc in 2016-17 – Feedback

Auto component industry is expected to grow by up to 10 per cent in the current fiscal on the back of sales growth in passenger vehicles and motorcycle segments, rating agency Icra said today.

Icra expects the auto component industry to gain momentum and register growth of 8.5-10 per cent in the current fiscal as against 2.8 per cent growth in the last fiscal, the rating agency said in its quarterly note on auto component sector. Over the medium to long term, growth in the auto component industry will be higher than the underlying automotive industry growth, given the increasing localisation by OEMs, higher component content per vehicle and rising exports from India , it added. “In ICRA’s views, implementation of the 7th Pay Commission is expected to support urban/semi-urban segments like PV and scooter, whereas rural demand will be driven by expected above-average monsoon,” it said.

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