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The after-market segment was the silver-lining for the auto-component industry last financial year, growing at 25.6 per cent.
According to latest data released by the Automotive Component Manufacturers Association of India (ACMA), the after-market segment sales surged to ₹56,096 crore in 2016-17 from ₹44,660 crore the preceding year. Exports stood at ₹73,128 crore (₹70,916 crore).
Overall, the industry clocked a turnover of ₹2.92 lakh crore ($43.5 billion), growing 14.3 per cent over the previous year and clocking a compounded annual growth rate of 7 per cent over the past six years. Imports dropped to ₹90,662 crore (₹90,571 crore).
“Despite the challenges of demonetisation and uncertainty in implementation of GST, vehicle production remained buoyant. In this backdrop, the auto component industry posted an encouraging performance,” said ACMA President Rattan Kapur.
The data, according to ACMA, represent the entire supply from the auto component industry to on-road and off-road vehicle manufacturers and the after-market in India as well as exports.
In terms of the pattern of supply, ACMA said 49 per cent went to passenger vehicles, 22 per cent to two-wheelers, 11 per cent to medium and heavy commercial vehicles, 8 per cent to light commercial vehicles, 6 per cent to tractors, 2 per cent to three-wheelers, and 2 per cent to backhoe loaders.
On the challenges, Vinnie Mehta, ACMA Director-General, said the component industry will need to prepare for e-mobility, but at this juncture its hands are full in graduating from BS-IV to BS-VI.
“Leapfrogging a generation of technology in just three years not only calls for sizeable investments for technology acquisition and absorption, but also for skilling people,” he said.
The need of the hour, he said, is a long-term stable, technology-agnostic roadmap for the automotive industry driven by a sound regulatory framework.
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