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The Indian auto component industry has registered a growth of 11% during FY15, clocking a turnover of Rs 2.34 lakh crore ($ 38.5 billion) as per the findings of the Automotive Component Manufacturers Association of India (ACMA) industry performance review for the fiscal.
The industry has also seen a CAGR of 11 per cent over the last six years.
This data represents the entire supply from the auto component industry in India to the on-road and off-road vehicle manufacturers and the after market in India as well as overseas. The data also includes that of captive suppliers to the OEMs and the unorganized & smaller players. “Despite a challenging 2013-14, the auto component industry bounced back, to grow at 11 per cent in 2014-15, Ramesh Suri, President, ACMA, said in a statement.
Vinnie Mehta, Director General, ACMA added, “The auto component industry in India is expected to scale $ 100 billion in turnover by 2020 with exports to grow in range of $ 35-40 billion. During the last fiscal several macro headwinds obstructed the growth in the industry including flagging vehicle sales, high capital costs, high interest rates and slowing down of investment in manufacturing. The industry’s focus on exports, quality and various cost saving initiatives has helped it weather the weak business environment leading to a double-digit growth.”
Key findings
Exports of auto components grew by 11.4 per cent to Rs 68,500 crore ($ 11.2 billion) from Rs 61,400 crore ($ 10.2 billion) in 2013-14, registering a CAGR of 29 per cent in the last six years.
Europe accounted for 36.9 per cent of exports, followed by Asia at 25.2 per cent and North America at 23.2 per cent. Exports to Africa, Latin America and North America increased by 12.6 per cent, 4.6 per cent and 18.9 per cent respectively, over the previous fiscal. The key export items include engine parts, transmission parts, brake system & components, body parts, exhaust systems and turbochargers.
Imports of auto components grew by 7.5 per cent to Rs 82,900 crore ($ 13.58 billion) in 2014-15 from Rs 77,160 crore ($ 12.8 billion) in 2013-14; Asia and Europe contributed to 57.9 per cent and 32.4 per cent of the imports respectively. Asia and Europe contributed to maximum imports followed by North America and Latin America.
Aftermarket grew by 12 per cent to Rs 39,875 crore from Rs 35,603 crore in the previous fiscal.
Capacity Addition
During fiscal 2014-15 an estimated capital investment of around $ 0.3 - 0.4 billion (Rs 1,980 – Rs 2,767 crore) was witnessed in the auto component sector. Due to moderation in vehicle sales and depressed market sentiments, the investment in 2014-15 declined compared to the previous year. Capex in 2013-14 stood at around $ 0.5 -0.7 billion (Rs 3,200 – Rs 4,400 crore).
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