Indian regional auto component exports up 20-25%.
Exports from the Rajkot-based autoparts hub of Gujarat were around Rs 200-250 crore ($33.5m - $42m) during 2013-14, indicating that the region's industry is looking overseas for its sales. Many of Gujarat's businesses are doing this for the first time.
The reason for the export focus is the slowdown in demand from domestic original equipment manufacturers (OEMs). Rajkot alone has around 500 small and medium sized component makers and around 50 businesses supply directly to OEMs.
"While more than 75-80 per cent of our production goes to OEMs in India, people indeed are focussing more on exports to boost their revenues," said Suresh Santoki, managing director of Amul Industries, makers of vehicle connecting rods and crankshafts. His company is seeing international markets representing around 25% of total turnover.
The Automotive Component Manufacturers Association (ACMA has noted a trend in companies investing in infrastructure designed specifically for exports. Now the industry body wants the Indian government to help companies by extending the 5% interest rate grant on capital equipment investment.