India’s auto parts sector seen at $110 bn in 2020

India’s auto parts sector seen at $110 bn in 2020

New Delhi: The Indian auto components sector is seen growing five times to $110 billion in the next decade with investments of more than $35 billion, an industry body said on Friday.

Of that target about $80 billion will be from India itself and the remaining from exports, the Automotive Components Manufacturers’ Association of India said in a statement.

In the year 2020 the auto components sector is expected to provide employment to about 41 million skilled people, contributing 3.6% to India’s gross domestic product (GDP) from 2.1% now, it said.

The Indian vehicles industry is seeing one of the fastest growth globally at about 30% and the entry of automakers from overseas is leading to more demand for cheaper autoparts in the country.