India’s Auto Parts Industry Likely to Double by 2021

India’s auto parts industry is on track to more than double in annual sales to $115 billion by 2021, according to the Automotive Component Manufacturers Assn. of India.

ACMA predicts the industry will expand 8%-10% to $44.9 billion during the current fiscal year ending next March 30. The trade group bases its bullish forecast on increased vehicle production, improved consumer sentiment and greater liquidity in India’s financial system.

The association notes that India’s auto parts industry tripled to $39 billion during the 10 years ended in April 2016. Exports, a fast-growing segment, accounted for nearly $11 billion of the total. ACMA says exports will balloon to at least $80 billion by 2026.

Aftermarket sales in the country, which totaled $8.4 billion last year, also are booming. The trade group predicts revenue from that sector will climb at a compound annual rate of 10.5% to $13 billion by early 2020.