Indian Auto Component Industry: The turnover of the automotive component industry rose by 9.8% year-on-year to Rs 6.14 lakh crore for the fiscal ended March 31, 2024, industry body ACMA said on Thursday. The industry had reported a turnover of Rs 5.59 lakh crore in the 2022-23 financial year.


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Component supply to OEMs (original equipment manufacturers) in the domestic market grew by 8.9% to Rs 5.18 lakh crore, with supply to the EV manufacturing industry accounting for 6% of the total component production in the country, the Automotive Component Manufacturers Association of India (ACMA) stated.


Exports grew by 5.5% year-on-year to USD 21.2 billion in the last fiscal while imports grew by 3% to USD 20.9 billion, thus resulting in a trade surplus of USD 300 million, it stated. The aftermarket, estimated at Rs 93,886 crore, also witnessed a growth of 10 percent in FY24, ACMA said.


"It is pertinent to note that apart from an increase in vehicle production, higher value addition from the component sector has led to growth in the auto components sector," ACMA President Shradha Suri Marwah noted.


Whilst overall merchandise exports from India witnessed degrowth in FY24, auto components exports have grown despite geopolitical challenges and there is an increase in logistics costs, she added.


"That apart, growth in imports has been comparatively lesser, leading to a trade surplus, indicating thrust by the industry on front of localisation," Marwah said.


On the business outlook, she stated that steady growth in the vehicle industry has resulted in 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 passenger vehicles and commercial vehicles, given the high base, due to inclement weather conditions and elections, she added.


"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," Marwah stated. ACMA represents over 900 auto component manufacturers.