The Automotive Component Manufacturers Association of India (ACMA) revealed a robust performance of India's Auto Component manufacturing industry, reporting a significant 12.6% growth to reach a turnover of INR 2.98 lakh crore (USD 36.1 billion) in the first half of FY24.
Vinnie Mehta, Director General, ACMA, attributed this growth to the steady performance of vehicle sales and exports. He stated, 'With vehicle sales and exports displaying steady performance, the auto component industry demonstrated a growth of 12.6 percent scaling a turnover of INR 2.98 lakh crore (USD 36.1 billion) in the first half of FY 2023-24.'
In this period, exports witnessed a 2.7% growth, reaching USD 10.4 billion, while imports also grew by 3.6%, totaling USD 10.6 billion. The Aftermarket, estimated at INR 45,158 crore, experienced a notable growth of 7.5%.
Shradha Suri Marwah, President, ACMA & CMD, Subros, shared insights on the industry's performance, noting that the sector witnessed steady growth in both domestic and international markets. She highlighted the mitigation of supply-side challenges faced during the pandemic, such as semiconductor availability, raw material costs, and container availability.
Looking ahead, Shradha expressed optimism about the current fiscal year, anticipating another robust performance from the auto components sector. She emphasized the industry's ongoing investments in higher value-addition, technology upgrades, and localization to meet the demands of both domestic and international customers.
Key Findings of ACMA Industry Performance Review for H1 2023-24:
- Sales to OEMs: Auto Component sales to OEMs in the domestic market grew by 13.9%, reaching INR 2.54 lakh crore (USD 30.8 billion). Increased consumption of value-added components and a market preference shift towards larger vehicles contributed to this growth.
- Exports: Exports of auto components grew by 2.7%, totaling USD 10.4 billion (INR 85,870 crore). Notably, North America and Europe accounted for 33% each, witnessing increases of 2% and 12%, respectively.
- Imports: Imports of auto components grew by 3.6%, reaching USD 10.6 billion (INR 87,425 crore). Asia dominated imports with 63%, followed by Europe (27%) and North America (9%). Import growth from Asia was 2%, Europe 8%, and North America 2.5%.
- Aftermarket: The aftermarket witnessed substantial growth of 7.5% in H1 2023-24, reaching INR 45,158 crore (USD 5.5 billion) compared to INR 42,007 crore (USD 5.4 billion) in H1 2022-23.
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