Indian Auto Component Industry Grows 34.8 % In First Half Of 2022-23

Automotive Component Manufacturers Association of India (ACMA) today announced the findings of its industry performance review for the first half of fiscal 2022-23. The turnover of the automotive component industry stood at Rs.2.65 lakh crore (USD 33.8 billion) for the period April 2022 to September 2022, registering a growth of 34.8 per cent over the first half of the previous year.

“With vehicle sales and exports gaining traction, month-on-month, the auto component industry demonstrated a growth of 34.8 per cent scaling a turnover of Rs.2.65 lakh crore (USD 33.8 billion) in the first-half of FY 2022-23. Steady growth was witnessed in all segments – supply to OEMs, Exports as also the aftermarket. Exports grew by 8.6 per cent to USD 10.1 billion (Rs.79.03 lakh crore) while imports grew by 17.2 percent to USD 10.1 billion (Rs.79.8 lakh crore). The Aftermarket, estimated at Rs. 42,007 crore also witnessed a growth of 8 percent. Component sales to OEMs in the domestic market grew by 46 percent to Rs.2.23 lakh crore,” said Vinnie Mehta, Director General, ACMA.

ACMA industry performance review for H1 2022-23 observed exports of auto components grew by 8.6 per cent to USD 10.1 billion (Rs.79,033 crore) in H1 2022-23 from USD 9.3 billion (Rs 68,746 crore) in H1 2021-22. North America accounting for 33 per cent of exports, saw an increase of 12 per cent, while Europe and Asia, accounting for 30 per cent and 26 per cent respectively also registered increases of 4 and 11 per cent respectively. Whereas imports of auto components grew by 17.2 per cent from USD 8.7 billion (Rs.64,310 crore) in H1 2021-22 to USD 10.1 billion (Rs.79,815 crore) in H1 2022-23. Asia accounted for 65 per cent of imports followed by Europe and North America, with 26 per cent and 8 per cent respectively. Imports from Asia grew by 21 per cent, from Europe by 6 per cent and from North America by 29 per cent.

“With vehicle sales across all segments, reaching the pre-pandemic levels and moderation in the supply-side issues such as availability of semiconductors, high input raw-material costs and non-availability of containers, the auto components sector witnessed a steady growth in both domestic and the international markets in the first half of FY2022-23. With domestic manufacturing of vehicles and components gathering pace, imports also witnessed an uptick,” said Sunjay Kapur, President, ACMA Chairman, Sona Comstar.

Elaborating on the mood of the industry and outlook for the near to mid-term future, Kapur mentioned, “Going forward, I am optimistic that the current fiscal year will witness another good performance from the auto components sector. Further, with growth in consumption of EVs, we are witnessing fast transformation of the auto components sector to be an integral part of the EV manufacturing supply chain. The components industry is making steady investments as also acquiring technology companies. For medium to long term outlook, we need to be wary of the impending recession in Europe and the US as also the supply chain issues which are not fully behind us.”

The aftermarket in H1 2022-23 witnessed a growth of 8 per cent to Rs 42,007 crore (USD 5.4 billion) from Rs.38,895 crore (USD 5.3 billion) in H1 2021-22.