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The turnover of the automotive components industry witnessed a 32.8-percent growth at Rs 5.60 lakh crore ($ 69.7 billion) for the period April 2022 to March 2023, vis-à-vis Rs 4.20 lakh crore ($56.9 billion) earned in the corresponding period of FY22. The auto parts industry also outpaced its highest-ever turnover of $57.1 billon in FY19. This was revealed by the Automotive Component Manufacturers Association of India (ACMA) from the findings of its Industry Performance Review report for fiscal year 2022-23.
Furthermore, EVs accounted for 2.7 per cent of the turnover, up from 1 percent in FY22.
Growth factors
As per Sunjay Kapur, President, ACMA, & Chairman, Sona Comstar, the growth in vehicle sales and significant higher value addition from the component sector has led to its “noteworthy performance” in FY23. He also revealed that there has been steady growth in exports despite recessionary trends in Europe and the US, which are key export destinations for the auto components industry.
During FY2023, auto component sales to OEMs, in the domestic market, at Rs 4.76 lakh crore (USD 59.3 billion), grew 39.5 percent compared to the previous year. 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.
Furthermore, exports of automotive parts exports grew by 5.2 percent to Rs 1.61 lakh crore ($21 billion) in 2022-23, in contrast to Rs 1.41 lakh crore (USD 19.0 billion) in 2021-22. North America accounted for 32 percent of exports, which is a growth of 8 percent. Meanwhile, Europe and Asia accounted for 31 and 26 percent, which is a growth of 3 and 4 percent, respectively. The key export items included drive transmission and steering, engine components, body/chassis, suspension, and braking etc., as per ACMA’s findings.
ACMA also revealed that imports grew by 11 percent to Rs 1.61 lakh crore (USD 20.3 billion), leading to a trade deficit of $200 million. The aftermarket, estimated at Rs 85,333 crore, also witnessed a steady growth of 15 per cent.
Surge in demand
ACMA also claimed that traction in the domestic market also reflected on imports of component into India. Component imports grew by 10.9 percent in 2022-23 to Rs 1.63 lakh crore (USD 20.3 billion), up from Rs 1.36 lakh crore (USD 18.3 billion) in 2021-22. Asia accounted for 66 percent of imports followed by Europe and North America at 26 and 6 percent respectively. While imports from Asia grew 12 percent, those from Europe were up by 6 percent and from North America by 23 percent.
Increased movement of vehicles post-pandemic and surge in demand for used vehicles led to buoyancy in the aftermarket across all segments. The turnover of the aftermarket in FY 2022-23 stood at Rs 85,333 crore (USD 10.6 billion) compared to Rs 74,203 crore (USD 10.0 billion) in the previous year, as per ACMA’s revelations.
The aftermarket, estimated at Rs 85,333 crores, also witnessed a steady growth of 15 percent. Component sales to OEMs in the domestic market grew by 39.5 percent to Rs 4.76 lakh crore.
Vinnie Mehta, Director General, ACMA said, “On the back of significant vehicle sales in the country, a robust aftermarket and steady exports, the auto component industry demonstrated its best ever performance in FY23.”
Elaborating on the mood of the industry and outlook for the near future, Kapur mentioned that even though the automotive value-chain faced significant disruptions in the wake of the pandemic, vehicle sales, especially in the PV, CV, and tractor segments, have now reached pre-pandemic levels. He stated that even the two-wheeler industry has recovered well.
“With significant mitigation in the supply-side issues of availability of semiconductors, input raw-material costs, and logistics, the vehicle industry is expected to continue to perform well in FY24, which augurs well for the auto components sector. That apart, exports and growth in domestic aftermarket continue to be robust,” noted Kapur.
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Furthermore, EVs accounted for 2.7 per cent of the turnover, up from 1 percent in FY22.
Growth factors
As per Sunjay Kapur, President, ACMA, & Chairman, Sona Comstar, the growth in vehicle sales and significant higher value addition from the component sector has led to its “noteworthy performance” in FY23. He also revealed that there has been steady growth in exports despite recessionary trends in Europe and the US, which are key export destinations for the auto components industry.
During FY2023, auto component sales to OEMs, in the domestic market, at Rs 4.76 lakh crore (USD 59.3 billion), grew 39.5 percent compared to the previous year. 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.
Furthermore, exports of automotive parts exports grew by 5.2 percent to Rs 1.61 lakh crore ($21 billion) in 2022-23, in contrast to Rs 1.41 lakh crore (USD 19.0 billion) in 2021-22. North America accounted for 32 percent of exports, which is a growth of 8 percent. Meanwhile, Europe and Asia accounted for 31 and 26 percent, which is a growth of 3 and 4 percent, respectively. The key export items included drive transmission and steering, engine components, body/chassis, suspension, and braking etc., as per ACMA’s findings.
ACMA also revealed that imports grew by 11 percent to Rs 1.61 lakh crore (USD 20.3 billion), leading to a trade deficit of $200 million. The aftermarket, estimated at Rs 85,333 crore, also witnessed a steady growth of 15 per cent.
Surge in demand
ACMA also claimed that traction in the domestic market also reflected on imports of component into India. Component imports grew by 10.9 percent in 2022-23 to Rs 1.63 lakh crore (USD 20.3 billion), up from Rs 1.36 lakh crore (USD 18.3 billion) in 2021-22. Asia accounted for 66 percent of imports followed by Europe and North America at 26 and 6 percent respectively. While imports from Asia grew 12 percent, those from Europe were up by 6 percent and from North America by 23 percent.
Increased movement of vehicles post-pandemic and surge in demand for used vehicles led to buoyancy in the aftermarket across all segments. The turnover of the aftermarket in FY 2022-23 stood at Rs 85,333 crore (USD 10.6 billion) compared to Rs 74,203 crore (USD 10.0 billion) in the previous year, as per ACMA’s revelations.
The aftermarket, estimated at Rs 85,333 crores, also witnessed a steady growth of 15 percent. Component sales to OEMs in the domestic market grew by 39.5 percent to Rs 4.76 lakh crore.
Vinnie Mehta, Director General, ACMA said, “On the back of significant vehicle sales in the country, a robust aftermarket and steady exports, the auto component industry demonstrated its best ever performance in FY23.”
Elaborating on the mood of the industry and outlook for the near future, Kapur mentioned that even though the automotive value-chain faced significant disruptions in the wake of the pandemic, vehicle sales, especially in the PV, CV, and tractor segments, have now reached pre-pandemic levels. He stated that even the two-wheeler industry has recovered well.
“With significant mitigation in the supply-side issues of availability of semiconductors, input raw-material costs, and logistics, the vehicle industry is expected to continue to perform well in FY24, which augurs well for the auto components sector. That apart, exports and growth in domestic aftermarket continue to be robust,” noted Kapur.
Auto component industry clocks $69.7-bn topline in FY23, EVs contribute 2.7%
ACMA also claimed that traction in the domestic market also reflected on imports of component into India. Component imports grew by 10.9 percent in 2022-23 to Rs 1.63 lakh crore (USD 20.3 billion) from Rs 1.36 lakh crore (USD 18.3 billion) in 2021-22.
