India’s Auto Supply Industry Rebounds

Sales by India's automotive components industry, which fell 2% to 21.2 billion rupees ($352 million) in the year ended March 31, will rise 4%-6% in the current 12-month period, the Automotive Component Manufacturers Assn. predicts.

Car sales in India fell 5% to 1.8 million units in fiscal 2013-2014, according to the Society of Indian Automobile Manufacturers. But suppliers are optimistic about the current period because of big year-on-year sales gains in recent months. SIAM reported that demand for new cars jumped15% to 160,200 units in June.

Investment by the auto components sector plunged to about $700 million last year from at least $1.2 billion in the previous 12-month period. ACMA forecasts flat investment this year but unspecified growth in 2015-2016.