Though the off take of vehicles, particularly in the passenger vehicle and commercial vehicle segments, have been slower in the first quarter of the year, the momentum is likely to build up in the coming months, ACMA President and Subros MD, Shradha Suri Marwah told Autocar Professional.
25 Jul 2024 | 1806 Views | By Kiran Murali
India's auto component industry’s turnover during the current financial year (FY25) is likely to grow 7-10% on a year-on-year basis, according to senior officials from the Automotive Component Manufacturers Association of India (ACMA).
Though the off-take of vehicles, particularly in the passenger vehicle and commercial vehicle segments, have been ...
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India's auto component industry’s turnover during the current financial year (FY25) is likely to grow 7-10% on a year-on-year basis, according to senior officials from the Automotive Component Manufacturers Association of India (ACMA).
Though the off-take of vehicles, particularly in the passenger vehicle and commercial vehicle segments, have been slower in the first quarter of the year, the momentum is likely to build up in the coming months, ACMA President and Subros MD, Shradha Suri Marwah told Autocar Professional.
ACMA is optimistic about growth given the strong macro-economic indicators, government policies and over 7% growth projected for the Indian GDP. They also expect the government to soon roll out the third phase of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) scheme, which could boost the electric vehicle sales in the country.
During the previous financial year (FY24), the industry clocked a turnover of Rs 6.14 lakh crore ($74.1 billion), representing a growth of 9.8% on a year-on-year basis. The industry also posted a trade surplus of $300 million during the year, as exports grew 5.5% to Rs $21.2 billion while imports rose by just 3% to $20.9 billion.
“This year, we are witnessing good offtake in the domestic segment. Exports are likely to be stable, with growth in single digits expected,” ACMA Director General Vinnie Mehta noted. Electric vehicle manufacturing accounted for 6% of the total industry turnover in FY24, up from 3% in the year-ago period.
Autocar Professional has reported that the industry is expected to invest $2.5-3 billion during the current financial year, with a significant part of it going into capacity expansion. Last year, the industry is estimated to have invested in the range of $3-4 billion.