Indian auto component market robust, has foreign players' attention: ACMA's Sunjay Kapur

Sunjay Kapur, President of the Automotive Component Manufacturers Association of India (ACMA), in an interview with CNBC-TV18 stated that several foreign players have shown great interest in the Indian auto component market the past few years. Kapur highlighted that the industry is quite resilient and successfully ran businesses during the first phase of lockdown.

"We have held several roadshows and technology meetings over the last few months," said Kapur, who also added that joint ventures (JVs) for tier 2 suppliers are feasible but will take some time.

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According to him, the country has a healthy macroeconomic environment and a thriving economy and industry. He said while domestic business in India is still expanding, sales volumes in the US and Europe are driving the market. "The industry is investing again, and capex cycle is returning. EVs will also receive a significant amount of capital investment," he informed.

"The Indian auto component market witnessed a growth of 35 percent, with growth coming back to CVs. Good growth was seen in over 250 CC motorcycles, followed by 47 percent revenue from PV, 18 percent from 2W, 8 percent from M&H CVs," he said. The performance in the first half was driven by higher domestic market demand. 

Also, imports increased by 17.2 percent while exports rose by 8.6 percent. Import growth has accelerated due to domestic market expansion. However, the rate of export growth is declining as a result of global recessionary concerns.

The major export destinations were North America and Europe.

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