The government is considering incentives to the auto component industry to boost exports. The Ministry of Commerce and the Department of Heavy Industry is conducting a joint assessment of the sector.
The slump in automobile demand, in both the domestic and export markets, has hurt the auto component sector. The Automotive Component Manufacturers' Association of India (ACMA) has approached the Department of Heavy Industry to take steps to support the industry and address issues such as the high cost of borrowing and export incentives in the wake of the rupee depreciation.
The component industry has felt the hit of the drop in car sales, which fell for a record eighth month in a row in June.