Even when they have significantly ramped up their production portfolios, the Indian auto components makers are failing to meet the increased demand. The automakers as well as the general public have also increased its demand at a very high level.

And looking at the current situation, 10 auto components makers are thinking of making more investments for either enhancing their current capacities or for starting newer units within next 2-3 years time. The estimated investment will be no lesser than rupees 1,500 crore.

Another significant trend is that the contract prices too are at their peak. The rise in this segment has been close to 3-5 per cent in the last few months time. While the components makers are reluctant to increase the prices, the things have changed drastically in last 7-8 months time and so the case.

President of the Auto Component Manufacturers Association (ACMA) Jayant Davar believes that the re negotiation in the price are important since the makers need to gap the bridge between demand and supply. To be able to do that they are making percentage changes in their contract rates.

No time line was given for the increased rates to become operational.