Chennai, Nov 17: Indian auto components' exports are expected to grow at a compound annual growth rate (CAGR) of 21.5 per cent to touch USD 2.57 billion during the period 2003 and 2009 as outsourcing from the country is fast catching up, according to a latest study by Frost and Sullivan.

Auto components exports from India will see a structural shift with higher supplies to OEMs and tier I companies, the study says adding exports from joint ventures or subsidiaries of overseas companies are also slated to go up.
"Companies that will benefit from higher exports to OEMs and tier I manufacturers will necessarily be among the leading participants in the industry as they only have the requisite production capacities and quality levels to cater to the needs of global OEMs," the study points out.
Total domestic production of automotive components in financial year (FY) 2003 was approximately 5.40 billion and the industry registered a CAGR of 17 per cent between FY 1998 and FY 2003.
OEMs and tier I companies in the global automotive industry are increasingly outsourcing their requirements for components as sub-assemblies to developing countries as this assisted them in cost re-structuring besides providing an opportunity to enter these domestic markets.
Bureau Report