Automotive Component Industry Sees 9.8% Growth, Reaches Rs 6.14 Lakh Cr Turnover

The Indian automotive component industry saw decent growth in the fiscal year ending 31 March 2024, with turnover climbing by 9.8 per cent to Rs 6.14 lakh crore. This increase, up from Rs 5.59 lakh crore in the previous financial year, points to the sector's resilience and expansion amid a challenging economic landscape. 

The Automotive Component Manufacturers Association of India (ACMA) reported a rise in domestic component supply to OEMs, which grew by 8.9 per cent to Rs 5.18 lakh crore. Components for the electric vehicle (EV) industry constituted 6 per cent of the total production, pointing to the sector's shift towards greener technology.

Export figures also showed positive movement, with exports increasing by 5.5 per cent year-on-year (YoY) to USD 21.2 billion. Imports rose by 3 per cent to USD 20.9 billion, resulting in a trade surplus of USD 300 million. This surplus highlights the industry’s growing focus on localisation and its ability to maintain a favourable trade balance despite rising logistics costs and geopolitical uncertainties. Additionally, the aftermarket sector enjoyed a 10 per cent increase, reaching Rs 93,886 crore.

ACMA President Shradha Suri Marwah attributed the growth to increased vehicle production and enhanced value addition within the component sector. She noted that while overall merchandise exports from India faced challenges, the automotive components sector has thrived, benefiting from robust domestic demand and strategic localisation efforts.

Marwah also mentioned a slight slowdown in vehicle sales during the first quarter of FY25, attributed to adverse weather conditions and elections. Despite this, Marwah said she remains optimistic about the industry’s outlook. 

With strong macroeconomic indicators, supportive government policies, and a projected GDP growth of over 7 per cent for India, Marwah expects the automotive component sector to continue its positive trajectory in the coming fiscal year.