The turnover of the automotive component industry stood at Rs. 6.14 lakh crore (USD 74.1 billion) for the period April 2023 to March 2024, registering a growth of 9.8 per cent over the previous year.
The Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s Auto Component manufacturing industry today revealed the findings of its Industry Performance Review for the fiscal year 2023-24.
Commenting on the performance of the auto component industry, Vinnie Mehta, Director General of ACMA said, “On the back of steady vehicles’ production in the country, a robust aftermarket and growth in exports, the auto component industry grew to Rs. 6.14 lakh crore (USD 74.1 billion) registering 9.8 per cent growth in FY23-24, thus outpacing the turnover of Rs. 5.59 lakh crore in the previous fiscal. Component supply to OEMs in the domestic market grew by 8.9 per cent to Rs. 5.18 lakh crore, with supply to the EV manufacturing industry accounting for 6 per cent of the total component production in the country. Exports grew by 5.5 per cent to USD 21.2 billion while imports grew by 3 per cent to USD 20.9 billion, thus resulting in a trade surplus of USD 300 million. The Aftermarket, estimated at Rs. 93,886 crore also witnessed growth of 10 per cent.”
Sharing insights on the performance of the industry, Shradha Suri Marwah, President, ACMA & CMD, Subros said, “It is pertinent to note that apart from increase in vehicle production, higher value addition from the component sector has led to growth in the auto components sector. On the front of trade, whilst overall merchandise exports from India witnessed degrowth in FY24, auto components exports have grown despite geopolitical challenges and increase in logistics costs. That apart, growth in imports has been comparatively lesser, leading to trade surplus, indicating thrust by the industry on front of localisation.”
Elaborating on the mood of the industry and outlook for the near future, Marwah mentioned, “Steady growth in the vehicle industry has resulted the industry reaching pre-pandemic levels of performance in FY24 in most segments, however, the first quarter of FY25 witnessed somewhat slower offtake in vehicle sales, especially in PVs and CVs, given the high base, due to inclement weather conditions and elections. With strong macro-economic indicators, conducive government policies and over 7 per cent growth projected for the Indian GDP, we are hopeful that the auto components industry will continue to perform well in FY25.”
Key findings of the ACMA Annual Industry Performance Review for 2023-24:
Sales to OEMs: Auto Component sales to OEMs, in the domestic market, at Rs. 5.18 lakh crores (USD 62.4 billion) grew 8.9 per cent compared to the previous year. Consumption of increased value-added components, thrust on localisation, and shift in market preference towards larger and more powerful vehicles contributed to the increased turnover of the auto-components sector.
Exports: Exports of auto components witnessed growth of 5.5 per cent to USD 21.2 billion in 2023-24 in contrast to USD 20.1 billion in 2022-23. North America accounting for 32 per cent of exports saw a growth of 4.5 per cent. Europe accounted for another 33 per cent and Asia for 24 per cent respectively. Exports to Europe grew 12 per cent while to Asia it remained flat. The key export items included drive transmission & steering, engine components, body & chassis, suspension & braking systems, etc.
Imports: Component imports grew by 3.0 per cent in 2023-24 to USD 20.9 billion from USD 20.3 billion in 2022-23. Asia accounted for 66 per cent of imports followed by Europe and North America at 26 per cent and 8 per cent respectively. Imports from Asia grew 3 per cent, while that from Europe by 4 per cent. Imports from North America remained flat in FY24. The key import items included engine components, body & chassis, suspension & braking, drive transmission & steering, etc.
The export and import profile of the Indian auto components industry is very similar.
Aftermarket: Increased movement of vehicles and surge in demand for used vehicles led to buoyancy in the aftermarket across all segments. The turnover of the aftermarket in FY 2023-24 stood at Rs. 93,886 crore (USD 11.3 billion) compared to Rs. 85,333 crore (USD 10.6 billion) in the previous year. The aftermarket, with increase in e-commerce, is witnessing enhanced penetration especially in the hinterland and a gradual evolution into organised sector.
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