New Delhi: The turnover of the automotive component industry grew 34.8% to INR 2.65 lakh crore (USD 33.8 billion) during April-September 2022 compared to the first half of the previous year, according to a report of the Automotive Component Manufacturers Association of India (ACMA).
The report also said that exports of auto components grew by 8.6% to USD 10.1 billion (INR79,033 crore) in H1 2022-23 from USD 9.3 billion (INR 68,746 crore) in H1 2021-22. North America, accounting for 33% of exports, saw an increase of 12%, while Europe and Asia, accounting for 30% and 26% respectively also registered increases of 4% and 11% respectively.
Vinnie Mehta, Director General, ACMA, said that with vehicle sales and exports gaining traction month-on-month, the auto component industry demonstrated a growth of 34.8%.
“Steady growth was witnessed in all segments – supply to OEMs, exports and the aftermarket. Exports grew by 8.6% to USD 10.1 billion (INR79,033 crore) while imports grew by 17.2 percent to USD 10.1 billion (Rs.79,815 crore). The Aftermarket, estimated at INR 42,007 crore also witnessed a growth of 8%. Component sales to OEMs in the domestic market grew by 46% to Rs.2.23 lakh crore,” he said.
According to the report, imports of auto components grew by 17.2% from USD 8.7 billion (INR 64,310 crore) in H1 2021-22 to USD 10.1 billion (INR.79,815 crore) in H1 2022-23. Asia accounted for 65%r cent of imports followed by Europe and North America, with 26% and 8% respectively. Imports from Asia grew by 21%, from Europe by 6% and from North America by 29%.
The aftermarket in H1 2022-23 witnessed a growth of 8% to INR42,007 crore (USD 5.4 billion) from INR38,895 crore (USD 5.3 billion) in H1 2021-22.
Sunjay Kapur, President, ACMA, and Chairman, Sona Comstar, said, “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 FY23. With domestic manufacturing of vehicles and components gathering pace, imports also witnessed an uptick.”
“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 a 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,” Kapur said.
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