The Indian auto-component industry clocked the highest-ever turnover of ₹5.6 lakh crore ($69.7 billion), and grew 32.8% in fiscal 2022-23, reported Automotive Component Manufacturers Association of India (ACMA), the apex body representing the sector, on Monday.
The industry sized-up to ₹4.20 lakh crore in FY21-22.
“On back of significant vehicle sales in the country, a robust aftermarket and steady exports, the auto component industry demonstrated its best-ever performance in FY23,’‘ said Vinnie Mehta, Director General, ACMA in his commentary. Last fiscal also witnessed auto-components exports grow by 5.2% to ₹1.61 lakh crore ($20.1 billion) while imports climbed by 10.9% to ₹1.63 lakh crore ($20.3 billion). The aftermarket segment, valued at ₹85,333 crore, also witnessed a steady growth of 15%. Component sales to OEMs in the domestic market grew by 39.5% to ₹4.76 lakh crore, the trade body reported.
Sunjay Kapur, President, ACMA & Chairman, Sona Comstar said, “Apart from growth in vehicle sales, significant higher value addition from the component sector has led to its noteworthy performance in FY23. There has been steady growth in exports despite recessionary trends in Europe and the U.S. which are key export destinations for the auto- components industry.’‘
Strong rebound in vehicle sales in the domestic market also led to a sharper rise in imports that translated into a trade deficit this year, he noted.
According to Mr. Kapur, despite the pandemic-induced disruptions, vehicle sales, especially passenger vehicle and commercial vehicles, grew to pre-pandemic levels. The two-wheeler industry also recovered well.
“With significant mitigation in the supply-side issues of availability of semiconductors, input raw-material costs and logistics, the vehicle industry is expected to continue to perform well in FY24, which augurs well for the auto components sector,’‘ he added.
