Indian Auto Component Industry Clocks Highest-Ever Turnover in FY2023

Automotive Component Manufacturers Association of India (ACMA), has announced the findings of its Industry Performance Review for the fiscal year 2022-23. The turnover of the automotive component industry stood at Rs 5.60 lakh crore for the period of April 2022 to March 2023, registering a growth of 32.8 per cent over the previous year.

Furthermore, auto component sales to OEMs, in the domestic market, at Rs 4.76 lakh crore grew 39.5 per cent compared to the previous year. Consumption of increased value-added components and shift in market preference towards larger and more-powerful vehicles contributed to the increased turnover of the auto-components sector.

Exports of auto components, on the other hand, witnessed growth of 5.2 per cent to Rs 1.61 lakh crore in 2022-23 in contrast to Rs 1.41 lakh crore in 2021-22. North America accounting for 32 per cent of exports, saw a growth of 8 per cent. Europe accounting for 31 per cent and Asia for 26 per cent grew 3 per cent and 4 per cent respectively. The key export items included drive transmission and steering, engine components, chassis, suspension and braking.

Commenting on the performance of the auto component industry, Vinnie Mehta, Director General, ACMA said, “On back of significant vehicle sales in the country, a robust aftermarket and steady exports, the auto component industry demonstrated its best ever performance in FY23.”

Sharing his insights on the performance of the industry, Sunjay Kapur, President, ACMA & Chairman, Sona Comstar 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. Strong rebound in vehicle sales in the domestic market also led to sharper rise in imports that has translated into trade deficit this year.”

Component imports grew by 10.9 per cent in 2022-23 to Rs 1.63 lakh crore from Rs 1.36 lakh crore in 2021-22. Asia accounted for 66 per cent of imports followed by Europe and North America at 26 per cent and 6 per cent respectively. Imports from Asia grew 12 per cent, while those from Europe by 6 per cent and North America grew by 23 per cent.

Increased movement of vehicles post-pandemic and surge in demand for used vehicles led to buoyancy in the aftermarket across all segments. The turnover of the aftermarket in FY 2022-23 stood at Rs 85,333 crore compared to Rs 74,203 crore in the previous year.