The auto component industry recorded its highest-ever turnover in 2022-23 at ₹5.60 lakh crore, registering a growth of 32.8 per cent over the previous year’s ₹4.2 lakh crore, and is expected to continue the double-digit growth.

According to the Industry Performance Review for 2022-23 by the Automotive Component Manufacturers Association of India (ACMA), the aftermarket, estimated at ₹85,333 crore also witnessed a steady growth of 15 per cent. Component sales to original equipment manufacturers (OEMs) in the domestic market grew 39.5 per cent to ₹4.76 lakh crore, it said.

Exports up

Exports grew 5 per cent to ₹1.61 lakh crore in FY23, while imports grew by 11 per cent to ₹1.63 lakh crore, ACMA said.

“It is pertinent to note that apart from growth in vehicle sales, significant higher value addition from the component sector has led to its noteworthy performance in FY23. On the front of trade, it is appreciable that there has been steady growth in exports despite recessionary trends in Europe and the US which are key export destinations for the auto components industry,” Sunjay Kapur, President, ACMA, told reporters here.

Strong rebound in vehicle sales in the domestic market also led to sharper rise in imports that has translated into trade deficit this year, he said.

Positive outlook

Talking about the mood and outlook of the industry, Kapur said: “With significant mitigation in the supply-side issues of availability of semiconductors, input raw-material costs and logistics, the vehicle industry is expected to continue to perform well in FY24, which augurs well for the auto components sector. That apart, exports and growth in domestic aftermarket continue to be robust.”

Whilst the automotive value-chain faced significant disruptions in wake of the pandemic, vehicle sales, especially in the PV, CV and tractor segments, have now reached pre-pandemic levels. Even the two-wheeler industry has recovered well, he added.