Exports and domestic sales show steady growth, driven by increased demand for value-added components and evolving market dynamics.
12 Dec 2024 | 4251 Views | By Autocar Professional Bureau
India's auto component industry registered a turnover of Rs. 3.32 lakh crore (USD 39.6 billion) for the period April to September 2024 (H1FY25), registering a growth of 11.3% over the first half of the previous year, as per the latest data revealed by the Automotive Component Manufacturers Association of India ...
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India's auto component industry registered a turnover of Rs. 3.32 lakh crore (USD 39.6 billion) for the period April to September 2024 (H1FY25), registering a growth of 11.3% over the first half of the previous year, as per the latest data revealed by the Automotive Component Manufacturers Association of India (ACMA).
Commenting on the development, Vinnie Mehta, Director General, ACMA, said, “With vehicle sales and exports displaying steady performance, the auto component industry demonstrated a growth of 11.3%, scaling a turnover of Rs. 3.32 lakh crore (USD 39.6 billion) in the first half of FY 2024-25. Auto component supplies to all segments of the industry, i.e., to OEMs, exports, and also the aftermarket, remained steadfast. Exports grew by 7% to USD 11.1 billion (Rs. 93.34 lakh crore), while imports grew by 4% to USD 11 billion (Rs. 92.05 lakh crore) with USD 150 million in surplus. The Aftermarket, estimated at Rs. 47,416 crore, also witnessed a growth of 5% Component supplies to OEMs in the domestic market grew by 11.2 percent to Rs. 2.83 lakh crore.”.
Sharing insights on the performance of the auto component industry, Shradha Suri Marwah, President, ACMA & CMD, Subros, said, “With vehicle sales across all segments reaching pre-pandemic levels and despite geopolitical challenges on the exports front, the auto components sector witnessed a steady growth in both domestic and international markets in the first half of FY2024-25.”
Elaborating on the mood of the industry and outlook for the near to mid-term future, Shradha mentioned, “The festive season brought significant sales across most segments of the vehicle industry. However, reflecting on the past eight months of this fiscal year, while two-wheelers have shown promising growth, sales of passenger vehicles (PVs) and commercial vehicles (CVs) have been relatively moderate. On the export front, with geological challenges, delivery time and freight costs have once again gone up. That said, in value terms, the industry remains in robust health, signalling stability and resilience amidst evolving market dynamics. The components industry continues to make investments for purposes of higher value addition, technology upgradation, and localisation to stay relevant to both domestic and international customers.”
Among the key findings of the report is that sales to OEMs in the domestic market, which stood at Rs. 2.83 lakh crores (USD 33.8 billion), grew 11.2% during HIFY25 as compared to the corresponding period of the previous year. Consumption of increased value-added components and shift in market preference towards larger and more-powerful vehicles continued to contribute to the increased turnover of the auto-components sector.
In terms of exports, the auto component industry reported a 7 percent jump to USD 11.1 billion (Rs. 93,342 crore) in H1 FY25 from USD 10.4 billion (Rs. 85,870 crore) in H1 FY24. North America, accounting for 31% of exports, saw an increase of 8.3%, while Europe also accounted for 31%; however, exports stayed at the previous year’s level. Asia, accounting for 22%, witnessed 10 % growth.
Imports, on the other hand, grew by 4% from USD 10.6 billion (Rs. 87,425 crore) in H1 2023-24 to USD 11.0 billion (Rs. 92,050 crore) in H1 FY25. Asia accounted for 65% of imports, followed by Europe and North America, with 27% and 7%, respectively. Imports from Asia grew by 5.5% , from Europe by 3.2%; however, they declined by 8.3% from North America.
Moreover, the aftermarket segment, which is an important part of the industry, witnessed a growth of 5% to Rs 47,416 crore (USD 5.7 billion) in H1FY25 from Rs 45,158 crore (USD 5.5 billion) in H1FY24. With an increase in e-commerce, the aftermarket is witnessing enhanced penetration, especially in the hinterland and a gradual evolution into the organised sector, the report added.