Indian auto-component industry achieves 32.8% growth in FY24

The Indian auto-component industry achieved an unprecedented turnover of INR 5.6 trillion (US$ 69.7 billion) in FY24, marking a remarkable growth of 32.8% compared to the previous fiscal year, according to a report from The Automotive Component Manufacturers Association of India (ACMA), the leading representative body for the sector.

The industry’s size amounted to INR 4.20 trillion in the preceding fiscal year. Experts attributed this remarkable performance to robust vehicle sales within the country, a thriving aftermarket, and consistent exports.

Exports of auto components also experienced a positive trajectory, increasing by 5.2% to reach INR 1.61 trillion (US$ 20.1 billion) in the last fiscal year. However, imports of auto components grew at a slightly higher rate, rising by 10.9% to INR trillion (US$ 20.3 billion). The aftermarket segment, valued at INR 85,333 crore, witnessed steady growth of 15%. Sales of components to original equipment manufacturers (OEMs) in the domestic market exhibited a significant increase of 39.5%, reaching INR 4.76 lakh crore.

Experts highlighted that the impressive performance of the component sector in FY23 can be attributed not only to increased vehicle sales but also to substantial value addition within the sector. 

Despite the challenges brought on by the pandemic, sales of vehicles, particularly in the passenger and commercial sectors, have rebounded to pre-pandemic levels. Additionally, the two-wheeler industry has shown strong signs of recovery.

With the mitigation of supply-side challenges such as semiconductor availability, raw material costs, and logistics, the experts expressed optimism that the vehicle industry will continue to perform well in the fiscal year 2024. This positive outlook bodes well for the auto components sector.

Source: The Hindu