The auto component industry is expected to report a 20-23 per cent revenue growth in 2021-22, supported by strong export demand and a recovery in the domestic original equipment and aftermarket segments, rating agency Icra has said.

The growth would come in on a low base of the last two fiscals and will look strong because of the exceptionally weak first half of 2020-21.

However, chip shortages, slow vaccination roll-out in some regions, logistics challenges and further lockdowns/curfews, if any, could be demand dampeners.

Commodity prices are also expected to remain at multi-year highs in the first half of the current fiscal , before softening in the second half of the financial year.