The Indian auto component industry, represented by the Automotive Component Manufacturers Association of India (ACMA), is set to invest between $6.5 and $7 billion over the next five years. This investment will be directed towards capacity expansion and technology upgrades, in response to robust demand forecasts.
ACMA President Shradha Suri Marwah revealed that the industry has seen a 12.6% year-on-year revenue growth in the first half of the current fiscal year, reaching ₹2.98 lakh crore ($36.1 billion). This growth trend is expected to continue into the next financial year, Marwah added.
The industry’s optimism is fuelled by strong sales across most vehicle segments during the festive season. With vehicle sales returning to pre-pandemic levels and supply-side issues such as semiconductor availability, high raw-material costs, and container shortages being mitigated, the sector has seen steady growth in both domestic and international markets.
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ACMA Director General Vinnie Mehta further elaborated on the industry’s performance. He noted that auto component supplies to all industry segments, including Original Equipment Manufacturers (OEMs), exports, and the aftermarket, remained steadfast.
During the period under review, auto component exports grew by 2.7% to $10.4 billion (₹85.87 lakh crore), while imports grew by 3.6% to $10.6 billion (₹87.42 lakh crore). Asia accounted for 63% of imports, with China being the largest importing country, followed by Europe and North America.
The industry is making conscious efforts to reduce imports and increase localisation, with active government support. North America and Europe remained the biggest export markets, each accounting for 33% of exports in the April-September period.
Domestic sales of components to OEMs grew by 13.9% year on year to ₹2.54 lakh crore in the first half of the current fiscal. The shift in market preference towards larger and more powerful vehicles, along with the consumption of increased value-added components, contributed to the sector’s increased turnover.
The aftermarket, estimated at ₹45,158 crore, also witnessed a growth of 7.5% year on year. The Electric Vehicle (EV) segment continues to grow, with an increase in revenue from sales of EV components compared to the same period last fiscal.
ACMA represents over 875 manufacturers, contributing more than 90% of the auto component industry’s turnover in the organised sector.
