The Indian auto component industry has demonstrated growth in the first half of FY 2025 achieving a turnover of INR 3.32 lakh crore (USD 39.6 billion) marking an 11.3% increase compared to the same period last year. The performance review announced by the Automotive Component Manufacturers Association of India (ACMA) highlights significant strides in both domestic and international markets despite ongoing global challenges.
Sales to original equipment manufacturers (OEMs) in India reached INR 2.83 lakh crore (USD 33.8 billion), reflecting an 11.2% growth. This expansion is attributed to increased consumption of value-added components and a noticeable shift in consumer preference towards larger, more powerful vehicles. Key drivers include robust sales in the two-wheeler and utility vehicle segments, which have seen substantial growth during this period.
Exports of auto components rose by 7% amounting to USD 11.1 billion (INR 93,342 crore). North America and Asia accounted for the largest shares of exports, with the former experiencing an 8.3% growth and the latter 10%. While Europe contributed equally to the total exports, growth remained flat compared to the previous year. The trade surplus stood at USD 150 million, underscoring the industry's competitiveness in global markets.
Imports grew by 4% to USD 11.0 billion (INR 92,050 crore), with Asia accounting for 65% of total imports, followed by Europe and North America. Imports from Asia grew by 5.5%, while those from Europe increased by 3.2%. However, imports from North America saw a decline of 8.3%, reflecting regional variances in demand and sourcing patterns.
The aftermarket sector expanded by 5% to INR 47,416 crore (USD 5.7 billion), buoyed by the rise in e-commerce penetration and increasing formalisation of repair and maintenance services. The aftermarket has been particularly vibrant in smaller towns and rural areas, highlighting a broader reach of organised service networks.
While geopolitical uncertainties, rising freight costs, and raw material price volatility remain significant hurdles, stable domestic demand and a growing focus on carbon neutrality and clean technology present substantial opportunities for the sector. The government's infrastructure push and policies promoting electric mobility are expected to provide further tailwinds to the industry's growth trajectory.
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