new delhi global auto component market is pegged to be around 175 trillion however indian auto component industry revenue stands at just 40 billion which is just 23 percent of the total indian gdp and contributes 11 billion of exports it is expected the market size and exports will grow by fives times according to automotive mission plan amp 2026 this would require an investment of 2530 billion so we are not playing for todays market we are playing for 2026 said arvind balaji president acma top auto component manufacturers have invested 50 billion in the rd and 50 percent of innovation in the automotive industry is done jointly with auto component players advt according to industry leaders the growth opportunities are tremendous and that is the reason everybody is looking at this market however any opportunity comes with challenges the first and foremost challenge is to deliver a better quality and technology products to oems also industry sees a lag in scalingup new technology implementation and shifty government policies which are impacting the business the reason that industry isnt able to scale is that rbi guidelines dont allow companies to borrow money to buy companies due to this consolidation is not taking place however the global players can borrow money at 3 or 4 percent to that enables them to consolidate and expand further explaining the challenges balaji added at one hand the government is talking about make in india but on the other hand inverted duty structure is making cost of raw materials higher in india than anywhere else so the government say make in india but does not have policies in place for smooth functioning the government is ready to listen so we are giving them recommendations as we must have policies to promote manufacturing at the same time we are also recommending the government to encourage partners to invest in rd as government has removed some benefits in investing in rd lastly with new technology coming in there is a huge danger if we dont invest in increasing our capabilities in next 10 years we will end up borrowing technology through some fta scheme we are hopeful the government will respond advt by deepanshu taumar etauto published on jul 25 2016 at 0648 pm ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest insights analysis download etauto app get realtime updates save your favourite articles scan to download app technology rbi rd acma arvind balaji supply chian homenewsauto componentsindian auto component industry to grow 5x by 2026