Auto Component Sector Turnover Grows 9.8% In 2023-24: Data
The increased turnover is attributed to the thrust on localisation, and a shift in market preference towards larger and more powerful vehicles
Due to an increase in vehicle production and higher value addition from the component sector, the turnover of India's automotive component industry registered a growth of 9.8 per cent in the financial year 2023-24, according to the Automotive Component Manufacturers Association of India (ACMA). The turnover stood at Rs 6.14 lakh crore during the year, the ACMA said in its review for the fiscal year 2023-24
The increased turnover is attributed to the thrust on localisation, and a shift in market preference towards larger and more powerful vehicles
"On the front of trade, whilst overall merchandise exports from India witnessed degrowth in FY24, auto component exports have grown despite geopolitical challenges and an increase in logistics costs," Shradha Suri Marwah, President, ACMA, and Chief Managing Director (CMD), Subros said.
Auto component sales to Original Equipment Manufacturers (OEMs) in the domestic market were at Rs 5.18 lakh crore (USD 62.4 billion), growing 8.9 per cent compared to the previous year.
The exports of auto components witnessed growth of 5.5 per cent to USD 21.2 billion in 2023-24 in contrast to USD 20.1 billion in 2022-23. North America accounted for 32 per cent of exports, while Europe accounted for another 33 per cent and Asia for 24 per cent. The key export items included drive transmission and steering, engine components, body and chassis, suspension and braking systems.
Component imports grew by 3 per cent in 2023-24 to USD 20.9 billion from USD 20.3 billion in 2022-23. The turnover of the aftermarket in 2023-24 stood at Rs 93,886 crore (USD 11.3 billion) compared to Rs 85,333 crore (USD 10.6 billion) in the previous year.
Elaborating on the mood of the industry and outlook for the near future, Marwah mentioned that the first quarter of FY25 witnessed somewhat slower offtake in vehicle sales, especially in passenger vehicles and commercial vehicles, given the high base, due to inclement weather conditions and elections.
"With strong macro-economic indicators, conducive government policies, and over 7 per cent growth projected for the Indian GDP, we are hopeful that the auto components industry will continue to perform well in 2024-25," Marwah added in the release. (ANI)
