Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s auto component manufacturing industry on Tuesday, announced its Industry Performance Review findings for H1FY22.
The turnover of the automotive component industry stood at INR 1.96 lakh crore ($ 26.6 billion) for the period April - September 2021, registering a growth of 65% over H1 of the previous year, ACMA said in a statement.
Vinnie Mehta, Director General, ACMA, said that despite the slow offtake in vehicle sales due to supply-side issues, especially in the first quarter, the auto component industry demonstrated a remarkable turn-around in the first half of FY22.
Key findings of the ACMA Industry Performance Review for H1 2021-22:
Exports
Exports of auto components grew by 76% INR 68,746 crore ($ 9.3 billion) in H1FY22 from INR 39,003 crore ($ 5.2 billion) in H1FY21.
Europe accounted for 31% of exports witnessing 81% growth, while North America and Asia, accounting for 32% and 25%, respectively, registered 81% and 73% growth.
Imports
Imports of auto components grew by 71% from INR 37,710 crore ($5 billion) in H1FY21 to INR 64,310 crore ($ 8.7 billion) in H1FY22.
Asia accounted for 63% of imports followed by Europe and North America, with 29% and 7% respectively. Imports from all geographies witnessed a steep increase reflecting growth in domestic manufacturing activities.
Aftermarket
The aftermarket in H1FY22 witnessed a growth of 25% to INR 38,895 crore ($ 5.3 billion) from INR 31,116 crore ($ 4.1 billion) in H1FY21.
Sharing his insights on the performance of the auto component industry, Sunjay Kapur, President, ACMA, said, despite the resurgence of demand for vehicles, supply-side issues of availability of semiconductors, increasing input costs, rising logistics costs and availability of containers, among others, continue to hamper recovery in the automotive sector. However, in this backdrop, the auto component industry displayed remarkable resilience. Increased value-addition to meet regulatory compliance, fast recovery in external markets and traction in the domestic aftermarket market have contributed to the sector’s growth in H1FY22.
“Going forward, whilst the performance of the vehicle industry during the festive season has not been on expected lines, however there are indications that the vehicle demand, in the coming months, will improve. This, together with the increased focus by the auto industry on deep-localisation and the recent announcements by the of PLI schemes by the government on Advanced Chemistry Cell (ACC) Batteries and Auto & Auto Components will facilitate the creation of a state-of-the-art automotive value chain and developing India into an attractive alternative source of high-end auto components,” he added.
Outlook
Kapur mentioned, “According to a recent survey of ACMA leadership, despite concerns of another wave of pandemic, the industry is cautiously optimistic about the prospects of the Indian economy and the automotive sector for FY22. Auto component manufacturers have now, by and large, recovered, and the investment cycle has also commenced. On the subject of auto component industry preparing to be future-ready, 60% of the respondents mentioned that they were already equipped to be part of the EV supply chain, while the rest would be ready in the next two-odd years.”