NEW DELHI: The Indian auto component industry is cautiously optimistic of achieving high single digit growth this year as the industry as a whole is showing signs of recovery.

The Automotive Component Manufacturers Association of India (ACMA) expects the domestic market to continue to be a major contributor to the business and is looking at export growth after the “successful” components exhibition organized alongside the Auto Expo.

“We are starting to see positive signs in the parts industry. There are signs of recovery. While the rural market is larger, the passenger vehicle segment is growing and the commercial vehicle segment is also doing well.” ACMA Arvind chairman Balaji told PTI: “We are frustrated.”

He also predicted that early signs of increased economic activity would lead to wider growth.

Asked about growth expectations for this year, Balaji said, “It is too early for the growth rate. We have to wait until the bugdet. Any number can be given when it comes out, but at the moment it is in the very high single digits.”

Currently, the Indian auto component market is worth Rs 2,340 crore ($38.5 billion) with exports of Rs 685 crore ($11.2 billion).

He said that the domestic market will remain the major contributor to the components industry as exports account for only about 30% of the total.

Balaji added, “Exports have been growing for the last few years and are now stagnating, but they will continue to grow as exporters find a good opportunity, especially considering the rupee factor.”

Talking about the Component Show, he said, “We have a lot of international participation which reflects the potential that everyone sees in India. The technological development in India is as amazing as what they see .”

The components exhibition had 1,500 exhibitors, of which 900 were Indian companies and the remaining 600 were international companies. There were also foreign delegations from 20 countries, including China, Canada, France, Germany, Japan, Taiwan, South Korea and the UK.

The last edition of the exhibition had a total of 12000 including 750 companies exhibiting Indian companies and 450 international companies.