13-15 percent higher growth in FY18 by auto components industry

Kolkata, March 02: The auto components industry is expected to register a higher growth of 13-15 percent in the current fiscal on the back of robust demand from domestic original equipment manufacturers (OEMs), rating agency Icra said.

The demand for auto components from domestic OEMs, especially high-volume two-wheeler (2W) and passenger-vehicle (PV) industry which together constitute about two third of overall ancillary industry size, has remained strong in the third quarter of the current fiscal, it said.

The rating agency said given the indicative trends, the growth momentum is expected to sustain in the fourth quarter of FY 2018 as well.

"The rating agency's sample of 48 auto ancillaries, comprising around 26 per cent of theAindustry's turnover, grew 18.5 per cent revenue-wise during third quarter FY2018. The same appeared stronger on low base of last fiscal, where overall performance was impacted by demonetisation.