The auto component business is expected to continue doing well in FY25 due to favorable government policies, robust macroeconomic indicators, and a forecast growth rate of above 7% for the Indian GDP.
With a turnover of $74.1 billion in FY24, the automotive component sector in India has surpassed all previous records, driven by stable production, a strong aftermarket, and increasing exports.
As per the Automotive Component Manufacturers Association of India (ACMA), the expansion in the auto components sector can be attributed to better value addition from the component sector, in addition to an increase in vehicle production.
The automotive sector has had steady expansion, leading to the industry’s performance in the majority of categories returning to pre-pandemic levels in FY24.
The industry grew 9.8% in FY24 compared to FY23 as exports, which have a trade surplus, continue to increase despite geopolitical headwinds.
The auto component aftermarket increased by 10% to reach $11.3 billion in the most recent fiscal year, according to ACMA.
The domestic market’s component supply to original equipment manufacturers (OEMs) has increased by 8.9% to Rs 5.18 lakh crore, according to Vinnie Mehta, Director General of ACMA.
Additionally, 6% of all component production in the nation was supplied to the EV manufacturing sector.
In the meantime, imports increased by 1% to $20.9 billion and exports increased by 5.5% to $21.2 billion.
Despite increased logistical costs and geopolitical challenges, exports of auto components have increased.
A trade surplus has resulted from a relatively lower growth in imports, suggesting that the industry is pushing for localization, as stated by Shradha Suri Marwah, President of ACMA and CMD of Subros.
