ET bureau

NEW DELHI: India’s auto component industry is completely open for business. With signs of strong new demand in the automotive market, some companies have delayed investments while others have accelerated investments in new capacity.

Companies such as Lumax, Varroc, JBM Group, CK Birla Group and others have scheduled new investments totaling more than Rs 5,000 crore (see table). A large portion is for adding new capacity and a large portion is to prepare for new safety and emission regulations.

Arya, Group Managing Director, JBM He said that the company has accelerated investments in several new facilities six months ahead of schedule.

JBM The group, which is a major supplier to Maruti Suzuki, plans to invest Rs 1,000 crore over four years in capacity expansion and new businesses. Aurangabad-based Varroc Group Over the same period, the Varroc Group plans to invest more than Rs 600 crore per annum in emissions technology and next-generation lighting systems. C K Birla NBC Bearing plans to invest 75 A part of this will be invested in a new plant in Savli, Gujarat.

“Market sentiment is upbeat and monsoon is good. We expect the overall sentiment to be upbeat for the festive season. We are rapidly moving ahead with investments in some new plants.”

The auto industry grew 13.4% from April to July 2017, driven by low interest rates, falling fuel prices and new models. Passenger car sales are nearing double-digit growth.

Lucas TVS Joint Managing Director & ACMAAACMAA & ACMAAAACMA President Arvind Balaji The company is investing. They are investing not only in capacity but also in building capacity to meet the new regulations and to achieve global scale and size.

“Once we reach that level, India will be in line with the world and India will have the potential to become a global manufacturing center, not only for Indian projects but also for global automotive and vehicle platforms, so it will have more advantages.” He added.

Mission Automotive expects the components industry to grow five-fold to 20,000 The next $1 billion The annual capital expenditure is expected to be around 5,000 $100 million. The company will also have to invest in upgrading its factories and labor force.

2017 The Indian automotive market will gradually shift to better safety standards from 2017 2020 and to BS VI emission standards year on year by 2020, which will require accelerated capacity building activities. However, the ability to meet the growing demand is key.