The domestic auto components industry may see a revenue growth of 15-17 % this fiscal and 10-12% in the next financial year on the back of recovery in automobile sales, according to a report.

Rating agency Icra revised downwards the revenue growth forecast for the auto components industry in the current fiscal to 15-17 percent.

A moderate rate of 18 per cent will not only address this challenge but will also enhance the tax base through better compliance, says Sunjay Kapur, President, Automotive Component Manufacturers Association (ACMA).

The auto components industry is poised for a 10- 15 per cent growth in fiscal 2022, following a 3 per cent slide in FY21 during peak Covid pandemic, according to Sunjay Kapur.

Ratings agency ICRA revised downwards the growth forecast for the auto components industry by 300 basis points for the ongoing fiscal year citing the impact of semiconductor shortage.

The government has issued notification regarding Production Linked Incentive (PLI) Scheme for automobile & auto components.

It is estimated that over a period of five years, the PLI Scheme for automobile and auto components industry will lead to fresh investment of over Rs 42,500 crore, incremental production of over Rs 2.3 lakh crore

The automotive industry donated oxygen concentrators, cylinders and added hospital beds. It has set up mobile clinics, tele-ICUs and teleconsultations to assist COVID-19 care centres in rural areas.

Niti Aayog CEO added that there is need for new synergies such as with IT industry in the areas of power electronics. India must look at using the first mover advantage for producing all components for electric vehicles, thus driving towards the path of being a future global leader.