Driven by steady vehicle production, a robust aftermarket, and an increase in exports, the auto component industry reported a turnover of INR 6.14 lakh crore $ 74.1 billion), in FY24 growing 9.8% over the previous year (INR 5.59 lakh crore), Automotive Component Manufacturers Association of India (ACMA), has stated.
Moreover, the industry witnessed a 10.1% CAGR growth during the past decade, highlighting the resilience and growth of automotive component sector, in the Indian manufacturing ecosystem.
Led by higher value-added components, localisation efforts, and a market preference shift towards larger and more powerful vehicles, the supply of components to domestic OEMs grew by 8.9%, reaching INR 5.18 lakh crore. Interestingly, Electric Vehicle’s contribution doubled to 6% of the total component production in the fiscal.
Exports increased by 5.5% to $ 21.2 billion, while imports grew by 3% to $ 20.9 billion, resulting in a trade surplus of $ 300 million. Key export items include drive transmission & steering, engine components, body & chassis, and suspension & braking systems. North America and Europe saw notable growth in exports, with North America accounting for a 4.5% increase and Europe a 12% increase. The key export destinations included North America (32%), Europe (33%), and Asia (24%).
Majority of imports came from Asia (66%), followed by Europe (26%) and North America (8%). Key import items included engine components, body & chassis, suspension & braking, and drive transmission & steering.
The aftermarket grew 10% to INR. 93,886 crore ($ 11.3 billion), driven by increased vehicle movement and a surge in demand for used vehicles. The sector is also witnessing enhanced penetration in the hinterland and a gradual shift towards a more organised structure due to the rise of e-commerce.
Outlook
Talking about the industry’s performance, Shradha Suri Marwah, President of ACMA & CMD of Subros, noted that the increase in vehicle production and higher value addition from the component sector contributed to the overall growth. Despite geopolitical challenges and rising logistics costs, auto components exports grew, indicating the sector's resilience. Marwah added, 'Steady growth in the vehicle industry has resulted in the industry reaching pre-pandemic levels of performance in FY24 in most segments.'
The outlook for FY25 is optimistic, with strong macroeconomic indicators and conducive government policies supporting the sector. Although the first quarter of FY25 witnessed slower vehicle sales due to inclement weather conditions and elections, the projected 7% growth in the Indian GDP is expected to sustain the auto components industry's performance.
ACMA Mobility Foundation
Marwah also has launched a new entity called the ACMA Mobility Foundation, which aims to bring new players into the fold, allowing them to engage with ACMA and become members. The foundation is dedicated to driving innovation, evaluating technology interfaces, and fostering sustainable growth in the mobility ecosystem.
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