Indian Auto Component Industry Surges, Records INR 6.14 Lakh Cr Turnover in FY 23-24

New Delhi, India – The Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s Auto Component manufacturing industry, announced the findings of its Industry Performance Review for the fiscal year 2023-24. The turnover of the automotive component industry stood at INR 6.14 lakh crore (US$ 74.1 billion) for the period April 2023 to March 2024, registering a growth of 9.8 percent over the previous year.

Commenting on the performance of the auto component industry, Vinnie Mehta, Director General, ACMA, said, “On the back of steady vehicles’ production in the country, a robust aftermarket, and growth in exports, the auto component industry grew to INR 6.14 lakh crore (US$ 74.1 billion), registering 9.8 percent growth in FY 23-24, thus outpacing the turnover of INR 5.59 lakh crore in the previous fiscal. Component supply to OEMs in the domestic market grew by 8.9 percent to INR 5.18 lakh crore, with supply to the EV manufacturing industry accounting for 6 percent of the total component production in the country. Exports grew by 5.5 percent to US$ 21.2 billion, while imports grew by 3 percent to US$ 20.9 billion, thus resulting in a trade surplus of US$ 300 million. The aftermarket, estimated at INR 93,886 crore, also witnessed growth of 10 percent.”

Sharing insights on the performance of the industry, Shradha Suri Marwah, President, ACMA & CMD, Subros, stated, “It is pertinent to note that apart from the increase in vehicle production, higher value addition from the component sector has led to growth in the auto components sector. On the front of trade, whilst overall merchandise exports from India witnessed degrowth in FY24, auto components exports have grown despite geopolitical challenges and an increase in logistics costs. That apart, growth in imports has been comparatively lesser, leading to a trade surplus, indicating thrust by the industry in front of localization.”

Elaborating on the mood of the industry and outlook for the near future, Marwah mentioned, “Steady growth in the vehicle industry has resulted in the industry reaching pre-pandemic levels of performance in FY24 in most segments, however, the first quarter of FY25 witnessed somewhat slower offtake in vehicle sales, especially in PVs and CVs, given the high base, due to inclement weather conditions and elections. With strong macro-economic indicators, conducive Government policies, and over 7 percent growth projected for the Indian GDP, we are hopeful that the auto components industry will continue to perform well in FY25.”

Key findings of the ACMA Annual Industry Performance Review for 2022-23:

Sales to OEMs: Auto Component sales to OEMs in the domestic market, at INR 5.18 lakh crore (US$ 62.4 billion), grew 8.9 percent compared to the previous year. Consumption of increased value-added components, thrust on localization, and shift in market preference towards larger and more powerful vehicles contributed to the increased turnover of the auto-components sector.
Exports: Exports of auto components witnessed growth of 5.5 percent to INR US$ 21.2 billion in 2023-24 in contrast to US$ 20.1 billion in 2022-23. North America, accounting for 32 percent of exports, saw a growth of 4.5 percent. Europe accounted for another 33 percent and Asia for 24 percent respectively. Exports to Europe grew 12 percent, while to Asia it remained flat. The key export items included drive transmission & steering, engine components, body & chassis, suspension & braking systems, etc.
Imports: Component imports grew by 3.0 percent in 2023-24 to US$ 20.9 billion from US$ 20.3 billion in 2022-23. Asia accounted for 66 percent of imports, followed by Europe and North America at 26 percent and 8 percent, respectively. Imports from Asia grew 3 percent, while that from Europe by 4 percent. Imports from North America remained flat in FY24. The key import items included engine components, body & chassis, suspension & braking, drive transmission & steering, etc. The export and import profile of the Indian auto components industry is very similar.
Aftermarket: Increased movement of vehicles and surge in demand for used vehicles led to buoyancy in the aftermarket across all segments. The turnover of the aftermarket in FY 2023-24 stood at INR 93,886 crore (US$ 11.3 billion) compared to INR 85,333 crore (US$ 10.6 billion) in the previous year. The aftermarket, with an increase in e-commerce, is witnessing enhanced penetration, especially in the hinterland, and a gradual evolution into the organized sector.

Image Source: ACMA