The Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s Auto Component manufacturing industry announced that the industry has grown 34.8 percent YoY in the first half of FY2023.
The turnover of the automotive component industry stood at Rs 2.65 lakh crore ($33.8 billion) between April -September 2022 or H1FY2023.
Exports grow 8.6 percent YoY in H1 to $10.1 billion while imports grew 17.2 percent YoY to $10.1 billion (Rs 79.03 lakh crore) .
The key findings of the ACMA Industry Performance Review for H1FY2023 highlighted that North America accounted for 33 percent of exports, saw an increase of 12 percent YoY, while Europe and Asia, accounting for 30 percent and 26 percent respectively also registered increase of 4 and 11 percent YoY respectively.
Sharing his insights on the performance of the auto component industry, Sunjay Kapur, President, ACMA 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 FY2023. With domestic manufacturing of vehicles and components gathering pace, imports also witnessed an uptick.”
Vinnie Mehta, Director General, ACMA pointed out that, “Steady growth was witnessed in all segments – supply to OEMs, exports as also the aftermarket. The Aftermarket, estimated at Rs. 42,007 crore also witnessed a growth of 8 percent YoY. Component sales to OEMs in the domestic market grew by 46 percent YoY in H1FY2023 to Rs 2.23 lakh crore”.
Elaborating on the mood of the industry and outlook for the near to mid-term future, Kapur added, “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 transformation to EV components manufacturing continues to gather pace and the industry stakeholders are optimistic about the near-term prospects.