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Chinese auto parts share in Indian market to increase 12 fold

According to industry chamber FICCI, the share of auto parts imported from China in the domestic market is expected to increase by 12 fold and would reach to USD 6.85 billion by 2012-13.

FICCI in a report said that in 2008-09, China's share in the domestic auto component market stood at USD 544.6 million. It said that "Import of auto parts from China have been rising at an alarming rate of 88% annually. With this growth rate, Chinese share in our domestic auto parts market would increase from 2.7% to 15.6% by 2012-13."

The total import of auto parts have increased to INR 27,355 crore in 2008-09 from INR 9,604 crore in 2004-05.

The report said that if the current rate of growth in the import continues, the share of the imported products in the domestic market will increase to 42% by 2013-14.

It said that the share of the imports would increase further on account of reduction of customs duty on several auto parts under free trade pacts with the ASEAN and South Korea.

In order to ensure orderly development of domestic auto component industry in view of the growing challenges from various free trade pacts, FICCI asked the government to give fiscal incentives to promote production of critical and high value added components.



(Source: Press Trust of India)