Indian Auto Component Industry Records 11.3% Growth in H1 FY2024-25
• Industry Growth: The Indian auto component industry grew by 11.3% in the first half of FY2024-25, reaching a turnover of Rs. 3.32 lakh crore (USD 39.6 billion), driven by strong performance in domestic sales, exports, and the aftermarket.
• Exports and Imports: Exports of auto components rose by 7% to USD 11.1 billion, while imports increased by 4% to USD 11 billion, resulting in a surplus of USD 150 million.
• Aftermarket Expansion: The aftermarket sector witnessed 5% growth, reaching Rs. 47,416 crore (USD 5.7 billion), supported by increasing e-commerce penetration and the sector’s shift toward organized operations.
• Investments and Outlook: Despite global challenges, the industry remains resilient, focusing on investments in technology upgradation, value addition, and localization to meet both domestic and international market demands.
New Delhi, 12th December 2024
The Indian auto component industry continues to showcase resilience and robust growth, with an 11.3% increase in turnover during the first half of FY2024-25, reaching a remarkable Rs. 3.32 lakh crore (USD 39.6 billion). These findings were unveiled yesterday by the Automotive Components Manufacturers Association of India (ACMA) during a press conference at Hotel Lalit, New Delhi.
Steady Growth Across Segments
Vinnie Mehta, Director General of ACMA, emphasized the sector's stability despite global challenges. “With vehicle sales and exports performing steadily, the auto component industry grew by 11.3%, achieving a turnover of Rs. 3.32 lakh crore in H1 FY2024-25. Supplies to OEMs, exports, and the aftermarket all showed positive growth. Exports rose 7% to USD 11.1 billion, while imports increased 4% to USD 11 billion, resulting in a surplus of USD 150 million. The aftermarket, valued at Rs. 47,416 crore, also grew by 5%,” said Mehta.
Shradha Suri Marwah, President of ACMA and CMD of Subros, highlighted the sector’s resilience amidst global uncertainties. “Vehicle sales across all segments have reached pre-pandemic levels. Despite geopolitical challenges affecting exports, the sector has witnessed steady growth in both domestic and international markets. The industry remains committed to investments in technology upgradation, value addition, and localization to meet evolving demands,” she stated.
Key Insights from H1 FY2024-25
Sales to OEMs:
Supplies to domestic OEMs reached Rs. 2.83 lakh crore (USD 33.8 billion), growing 11.2% over the same period last year. This growth was driven by a shift toward higher value-added components and market preferences for larger, more powerful vehicles.Exports:
Exports of auto components grew 7%, amounting to USD 11.1 billion (Rs. 93,342 crore), compared to USD 10.4 billion in H1 FY2023-24. North America led export growth with an 8.3% rise, while Asia saw a 10% increase. Europe maintained its previous year’s performance.
Imports:
Imports grew 4%, reaching USD 11 billion (Rs. 92,050 crore). Asia accounted for 65% of imports, followed by Europe at 27% and North America at 7%. Imports from Asia grew by 5.5%, while Europe saw a 3.2% rise. However, imports from North America declined by 8.3%.
Aftermarket:
The aftermarket sector grew 5%, reaching Rs. 47,416 crore (USD 5.7 billion). Increased e-commerce penetration and evolving organized markets have contributed significantly to this growth, particularly in rural areas.
Industry Challenges and Outlook
The festive season boosted vehicle sales, but the growth rate for passenger and commercial vehicles was moderate compared to two-wheelers, which showed promising trends. Geopolitical challenges have led to increased delivery times and higher freight costs, impacting export dynamics.
Despite these challenges, the auto component industry remains optimistic, with ongoing investments in innovation, localization, and sustainability to cater to domestic and global markets.
About ACMA
The Automotive Component Manufacturers Association of India represents over 1,000 manufacturers, accounting for over 90% of the organized sector’s turnover. With a commitment to fostering growth and innovation, ACMA plays a vital role in shaping the future of the Indian auto component industry.
For more insights into the industry and its latest developments, stay tuned to Auto Asia Magazine.
