The turnover of the automotive component industry stood at INR 4.20 lakh crore ($56.5 billion) for the period April 2021 to March 2022, registering a growth of 23% over the previous year.
A report by the Automotive Component Manufacturers Association of India (ACMA) noted that this was the highest ever revenue recorded by the Indian auto component industry. Auto Component sales to OEMs, in the domestic market, at INR 3.41 lakh crore ($45.8 billion), grew 22% compared to the previous year.
'Significant growth was witnessed across all segments including supply to OEMs, exports as also the aftermarket. In this backdrop the component industry has grown to INR 4.20 lakh crore ($56.5 billion) registering 23% growth, thus outpacing its highest ever turnover of INR 3.95 lakh crore in FY18-19,' noted Vinnie Mehta, Director General, ACMA.
Exports also grew by 43% YoY to INR 1.41 lakh crore ($19.0 billion), while imports grew by 33% YoY to INR 1.36 lakh crore ($18.3 billion), leading to a trade surplus of $700 million. The aftermarket, estimated at INR 74,203 crore, also witnessed a steady growth of 15% YoY.
'Enhanced raw material prices, consumption of increased value-added components and shift in market preference towards larger and more-powerful vehicles contributed to the increased turnover of the auto-components sector,' said Sunjay Kapur, President, ACMA & Chairman, Sona Comstar.
Aftermarket, on the other hand, was aided by the consumption of increased value-added components and a shift in market preference towards larger and more-powerful vehicles.
Exports of auto components witnessed a growth of 43% to INR 1.41 lakh crore ($19.0 billion) in FY22, in contrast to INR 0.98 lakh crore ($13.3 billion) in FY21. North America, accounting for 32% of exports, saw a growth of 46%. Europe accounted for 31% and Asia for 25% grew 39% and 40%, respectively. The key export items included drive transmission and steering, engine components, body/chassis, suspension and braking, etc.
Kapur added, 'The component industry is also transforming itself as sales of two-wheeler and three-wheeler EVs gain traction. I am hopeful that the buoyancy in the market will continue through the year and that FY23 will witness a healthy performance.”
Poor offtake of two-wheelers, increase in the cost of insurance, high inflation, excessive fuel cost, and extreme logistics costs are some of the issues of concern to the industry.