The Automotive Component Manufacturers Association of India (ACMA) has announced a significant milestone for the Indian auto component industry. For the fiscal year 2023-24, the industry reported a turnover of Rs. 6.14 lakh crore (USD 74.1 billion), marking a robust growth of 9.8% compared to the previous year.
The growth is largely attributed to a 9% increase in supply to Original Equipment Manufacturers (OEMs), driven by a surge in vehicle production. The aftermarket sector also saw a notable rise, expanding by 10% to Rs. 93,886 crore (USD 11.3 billion). Notably, the supply of electric vehicles (EVs) now constitutes 6% of the total industry turnover.
Vinnie Mehta, Director General of ACMA, highlighted that the industry’s expansion is supported by steady vehicle production, a strong aftermarket, and growing exports. “The auto component sector’s growth to Rs. 6.14 lakh crore reflects an 8.9% increase in domestic OEM supplies, while exports grew by 5.5% to USD 21.2 billion,” Mehta said. Despite global geopolitical challenges, exports showed resilience, contributing to a trade surplus of USD 300 million. Imports also rose by 3% to USD 20.9 billion.
ACMA President and CMD of Subros, Shradha Suri Marwah, pointed out that increased value addition and localization efforts are key factors in the sector’s performance. “Despite a general decline in overall merchandise exports, auto component exports have thrived due to our focus on localization and adaptation to geopolitical and logistical hurdles,” Marwah noted.
Looking ahead, Marwah expressed optimism for the industry’s continued growth. “Although the first quarter of FY25 has seen slower vehicle sales due to weather conditions and elections, we remain hopeful for strong performance in FY25, supported by favorable economic indicators and government policies.”
Key Findings:
- Sales to OEMs: Domestic sales grew to Rs. 5.18 lakh crore (USD 62.4 billion), driven by higher demand for value-added components and a shift towards larger vehicles.
- Exports: Reached USD 21.2 billion, with North America and Europe being significant markets.
- Imports: Increased to USD 20.9 billion, with a substantial portion sourced from Asia.
- Aftermarket: Saw growth to Rs. 93,886 crore, buoyed by increased vehicle usage and a shift towards organized sector e-commerce.
The data represents a comprehensive view of the Indian auto component sector, including both organized and unorganized market segments. ACMA remains committed to fostering growth and innovation within the industry.
