New Delhi: The Indian auto component industry is expected to achieve an annual turnover of $110 billion by 2020, for which a total investment of $35 billion is likely to be made, reports PTI quoting Automotive Component Manufacturing Association of India (ACMA).
According to a report, jointly prepared by ACMA and consultancy firm Ernst & Young, the industry is expected to contribute 3.6% of India's gross domestic product (GDP) by 2020 from the current level of 2.1%.
"The Indian auto component industry can potentially grow to over Rs500,000 crore ($110 billion) by 2020 driven in tandem with the surge in vehicle production in the country," the report - 'Vision 2020' said.
Out of the estimated turnover, the domestic sector is expected to contribute about Rs400,000 crore ($80 billion) while exports will stand at Rs140,000 crore ($29 billion).
"To achieve this potential, the auto component industry would require investment of over Rs160,000 crore ($35 billion) during the period," the report said, adding it would create an employment opportunity for over 10 lakh people.
The report said passenger vehicle sector will grow to about 90 lakh units while the commercial vehicle will cross 22 lakh units annually by 2020.
Currently, the passenger vehicle stands at around 20 lakh units while commercial vehicles is about to 5.3 lakh units.
"Two- and three-wheelers are expected to double to 2.2 crore units by 2015 and reach 3 crore units by 2020 driven by low penetration level, expanding rural sales and growth in exports," the report said.
Commenting on the report, ACMA president Jayant Davar said: "India is well on its way to be among the top five vehicle producing countries in the world by 2020... The auto component industry is expected to grow almost four fold to over $110 billion from its current level of $26 billion.
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