Growth Potential Beset With Threats

Manav Kapur, Executive Director, Steelbird International

- Manav Kapur

The infectious positivity causes contagious growth. The success of one industry in a sector stimulates the growth of allied industries. The auto components industry in India is influenced by the unprecedented boom in the automotive sector. While the share of the automotive industry in India’s GDP is 7.1% with a CAGR of 9.6%, the autocomponents industry is expected to increase by 9-11% in the current fiscal year.

However, the opportunities for the auto components industry are beset with challenges that need to be addressed strategically to ensure sustainable growth. The emergence of electric vehicles is considered as a big threat to the auto-components industry, though their present share is only less than 1%. The rising environmental problems and the Government’s commitment to a green drive confirm their smooth growth in the future. And unfortunately, there is an inverse relationship between electric vehicles and auto-component industry.