The $22-billion domestic automotive components industry is expected to close the fiscal 2010-11 with a close to 20 per cent growth in turnover in the Indian market.

In fact, the industry has blamed the sudden rise in demand of cars for the shortage of component for the auto industry. It is to be mentioned here that the Indian component industry has surely grown in line with the Indian automobile industry and has grown at a CAGR of 21% for the last five years.

The component industry is likely to cross the $26-billion (R1,19,600 crore) turnover mark soon as it also expects capacity addition of $2 billion (R9,200 crore) in the current fiscal.

Jayant Davar, president, Automotive Component Manufacturers Association (ACMA) said that in the first quarter of the fiscal, the industry has grown by 30%, the industry as a whole will grow by over 18% this fiscal.

Moreover, be it Maruti Suzuki, Hyundai or Mahindra and Mahindra, almost all the auto majors have blamed shortage of components for their inability to meet demand and hence are facing an issue of component shortage in the Indian market.