New Delhi, Dec 19: With the auto component industry expected to touch the 40 billion dollar mark by 2015, Nasscom today released a report on 'IT adoption in the Indian auto component industry'.
''The auto component market is huge and we are just scratching the surface at present. Assocition between the two industries of IT and auto component is inevitable,'' Nasscom President Kiran Karnik said.
The report studies the IT adoption challenges faced by manufacturing industry firms, especially in the small and medium enterprises (SMEs) segment and bring in an understanding of IT adoption thresholds, challenges and processes in different segments of the Indian auto component sector.
Automotive Component Manufacturers' Association (ACMA) is targeting Rs 71,000 crore business this year and the automobile capacity in the country is expected to double from 2.2 million unit per annum to 4.4 million units by 2010.
''IT has the potential to act as a force multiplier for the Indian auto component industry,'' Hi-Tech Gears Ltd CMD Deep Kapuria said.
Since the mid 80's, the auto and auto component industry has evolved itself to be at forefront of manufacturing sector, Mr Kapuria added.
The opportunity of growth in domestic area is still to fructify, thus the industry put together for itself a 'vision' along with the government as it realizes the auto industry is a locomotive for the growth of the country, Mr Kapuria said.
According to ACMA, the Indian auto component sector generated sales of about 15 billion dollars in fiscal year 2006-07, including 2.8 billion dollar worth of exports. The industry is expected to grow at a CAGR of 17 per cent over the period 2006-14 and that of exports by a CAGR of 34 per cent during 2006-14.