Indian Auto Component Industry Grows 65 Percent to INR 1.96 Lakh Crore in First half of 2021-22: ACMA

New Delhi, India – Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s auto component manufacturing industry, recently released the findings of its Industry Performance Review for the first half of fiscal 2021-22. The automotive component industry’s turnover was INR 1.96 lakh crore (USD 26.6 billion) from April to September 2021, representing a 66 percent increase over the first half of the previous year.

The following are the key findings of the ACMA Industry Performance Review for H1 2021-22:

Exports: Auto component exports increased by 76 percent to INR 68,746 crore (USD 9.3 billion) in H1 2021-22, up from INR 39,003 crore (USD 5.2 billion) in H1 2020-21. Europe, which accounts for 31 percent of total exports, saw an increase of 81 percent, while North America and Asia, which account for 32 percent and 25 percent of total exports, respectively, saw increases of 81 percent and 73 percent.
Imports: Auto component Imports increased by 71 percent from INR 37,710 crore (USD 5.0 billion) in H1 2020-21 to INR 64,310 crore (USD 8.7 billion) in H1 2021-22. Asia accounted for 63 percent of imports, followed by Europe and North America, which accounted for 29 percent and 7 percent, respectively. Imports from all geographies increased sharply, reflecting increased domestic manufacturing activity.
Aftermarket: From INR 31,116 crore in H1 2021-22 to INR 38,895 crore (USD 5.3 billion), the aftermarket increased by 25 percent to INR 38,895 crore (USD 5.3 billion).

Reiterating the performance of the auto component industry in India and stating the reasons for the slow pace of vehicle sales due to supply-side issues, particularly in the first quarter, the auto component industry demonstrated a remarkable turnaround in the first half of FY 2021-22, Vinnie Mehta, Director General, ACMA, also pointed out, “Component sales to OEMs in the domestic market grew by 76 percent to INR 1.53 lakh crore.”

In a similar vein, Sunjay Kapur, President, ACMA, commented, “Despite resurgence of demand for vehicles, supply-side issues of availability of semiconductors, increasing input costs, rising logistics costs and availability of containers, among others, continue to hamper recovery in the automotive sector. The auto component industry, in this backdrop, displayed remarkable resilience. Increased value-addition to meet regulatory compliance, fast recovery in external markets and traction in the domestic aftermarket market have contributed to the growth of the sector in the first-half of FY 2021-22.”

Explaining that the performance of the vehicle industry during the festive season was not as expected, but that there are signs that vehicle demand will improve in the coming months, Kapur asserted, “This, together with the increased focus by the auto industry on deep-localisation and the recent announcements by the of PLI schemes by the Government on Advanced Chemistry Cell (ACC) Batteries and Auto & Auto Components will facilitate the creation of a state-of-the-art automotive value chain and developing India into an attractive alternative source of high-end auto components.”

He further remarked, “According to a recent survey of ACMA leadership, despite concerns of another wave of pandemic, the industry is cautiously optimistic about the prospects of the Indian economy and the automotive sector for FY 2021-22. Auto component manufacturers have now, by and large, recovered and the investment cycle has also commenced. On the subject of the auto component industry preparing to be future-ready, 60 percent of the respondents mentioned that they were already equipped to be part of the EV supply chain, while the rest would be ready in the next two-odd years.”

Image Source: ACMA