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Indian auto components industry grows 34.8% to ₹2.65 lakh crore in first-half of 2022-23

Auto Component

Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s auto components manufacturing industry today announced the findings of its Industry Performance Review for the first half of fiscal 2022-23. The turnover of the automotive component industry stood at ₹2.65 lakh crore ($33.8 billion) for the period April 2022 to September 2022, registering a growth of 34.8% over the first half of the previous year.

Commenting on the performance of the auto component industry in India, Vinnie Mehta, Director General, ACMA said, “With vehicle sales and exports gaining traction, month-on-month, the auto component industry demonstrated a growth of 34.8% scaling a turnover of ₹2.65 lakh crore ($33.8 billion) in the first half of FY 2022-23. Steady growth was witnessed in all segments—supply to OEMs, exports as also the aftermarket. Exports grew by 8.6% to $10.1 billion (₹79,033 crore) while imports grew by 17.2% to $10.1 billion (₹79.8 lakh crore). The Aftermarket, estimated at ₹42,007 crore also witnessed a growth of 8%. Component sales to OEMs in the domestic market grew by 46% to ₹2.23 lakh crore”.

Sunjay Kapur, President, ACMA Chairman, Sona Comstar said, “With vehicle sales across all segments, reaching the pre-pandemic levels and moderation in the supply-side issues such as availability of semiconductors, high input raw-material costs and non-availability of containers, the auto components sector witnessed a steady growth in both domestic and the international markets in the first half of FY2022-23. With domestic manufacturing of vehicles and components gathering pace, imports also witnessed an uptick.”

Elaborating on the mood of the industry and outlook for the near to mid-term future, Kapur said, “Going forward, I am optimistic that the current fiscal year will witness another good performance from the auto components sector. Further, with growth in consumption of EVs, we are witnessing fast transformation of the auto components sector to be an integral part of the EV manufacturing supply chain. The components industry is making steady investments as also acquiring technology companies. For medium to long term outlook, we need to be wary of the impending recession in Europe and the US as also the supply chain issues which are not fully behind us.”

As per the key findings of the ACMA Industry Performance Review for H1 2022-23, exports of auto components grew by 8.6 percent to $10.1 billion (₹79,033 crore) in H1 2022-23 from $9.3 billion (₹68,746 crore) in H1 2021-22. North America accounting for 33% of exports, saw an increase of 12%, while Europe and Asia, accounting for 30% and 26% respectively also registered increase of 4 and 11% respectively.

Imports of auto components grew by 17.2% from $8.7 billion (₹64,310 crore) in H1 2021-22 to $10.1 billion (₹79,815 crore) in H1 2022-23. Asia accounted for 65% of imports followed by Europe and North America, with 26% and 8% respectively. Imports from Asia grew by 21%, from Europe by 6% and from North America by 29%.

The aftermarket in H1 2022-23 witnessed a growth of 8% to ₹42,007 crore ($5.4 billion) from ₹38,895 crore ($5.3 billion) in H1 2021-22.

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