Many of the companies feel Indian Auto Industry as the booming market because of the increasing demands of the consumers. To meet the requirements, many companies are launching new models and moderating the previous existing features.
According to Automotive Component Manufacturers Association of India(ACMA), for meeting the demands of the consumers which are increasing, and to enhance the capacity, Indian auto component sector is expecting to invest an amount of USD 3 billion every year.
Apart from expecting to increase the investment, the association is also pressing the government for improving safety, against the cheap import of finished parts which primarily includes China imports.
In view of enhancing the capacity, the industry is forecasting to add USD 2 billion. So that the investment will be around USD 3 billion for the next decade.
According to Association, Growth of the auto industry is about 20% and the momentum of continuous growth is expected to continue.
Total revenue of USD 25 billion, is expected for the fiscal by the component industry. Total sales of the sector is estimated to be around 22 billion US dollars and out of which the exports are around 3.8 billion for the year 2009-10.
The Indian Automobile Industry recorded the highest sales in the month of July. Even the component imports are also increasing and the increment is around USD 8.2 billion.
Even the association cautioned on the imports from the low cost countries. Because of very high input costs, the raw materials industry is working under loss.