Auto component industry grows 9.8% to clock ₹6.14 lakh cr turnover in FY24

The Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s Auto Component manufacturing industry, today announced the findings of its Industry Performance Review for the fiscal year 2023-24. The turnover of the automotive component industry stood at ₹6.14 lakh crore ($74.1 billion) for the period April 2023 to March 2024, registering a growth of 9.8% over the previous year.

“On the back of steady vehicles’ production in the country, a robust aftermarket and growth in exports, the auto component industry grew to ₹6.14 lakh crore registering 9.8% growth in FY23-24, thus outpacing the turnover of ₹5.59 lakh crore in the previous fiscal,” says Vinnie Mehta, director general, ACMA.

Component supply to OEMs in the domestic market grew by 8.9% to ₹5.18 lakh crore, with supply to the EV manufacturing industry accounting for 6% of the total component production in the country.

Exports grew by 5.5% to $21.2 billion while imports grew by 3% to $20.9 billion, thus resulting in a trade surplus of $300 million. The Aftermarket, estimated at ₹93,886  crore, also witnessed growth of 10%.

“It is pertinent to note that apart from increase in vehicle production, higher value addition from the component sector has led to growth in the auto components sector. On the front of trade, whilst overall merchandise exports from India witnessed degrowth in FY24, auto components exports have grown despite geopolitical challenges and increase in logistics costs,” says Shradha Suri Marwah, president, ACMA & CMD, Subros.

Growth in imports has been comparatively lesser, leading to trade surplus, indicating thrust by the industry on front of localisation, says Marwah.

“Steady growth in the vehicle industry has resulted the industry reaching pre-pandemic levels of performance in FY24 in most segments, however, the first quarter of FY25 witnessed somewhat slower offtake in vehicle sales, especially in PVs and CVs, given the high base, due to inclement weather conditions and elections. With strong macro-economic indicators, conducive government policies and over 7% growth projected for the Indian GDP, we are hopeful that the auto components industry will continue to perform well in FY25,” Marwah adds.

Auto Component sales to OEMs, in the domestic market, at ₹5.18 lakh crore grew 8.9% compared to the previous year. Consumption of increased value-added components, thrust on localisation, and shift in market preference towards larger and more powerful vehicles contributed to the increased turnover of the auto-components sector.

North America accounting for 32% of exports saw a growth of 4.5%. Europe accounted for another 33% and Asia for 24% respectively. Exports to Europe grew 12% while to Asia it remained flat. The key export items included drive transmission & steering, engine components, body & chassis, suspension & braking systems, etc.

Component imports grew by 3% in 2023-24 to $20.9 billion from $20.3 billion in 2022-23. Asia, led by China, accounted for 66% of imports followed by Europe and North America at 26% and 8% respectively. Imports from Asia grew 3%, while that from Europe by 4%.