Indian Economy News

Auto components industry grows by 34.8% to US$ 32 billion (Rs. 2.65 trillion) in the first half of FY22-23

  • IBEF
  • December 22, 2022

The Auto components industry of India recorded a growth of 34.8% to US$ 32 billion (Rs. 2.65 trillion) in the first half (H1) of FY 2022-23, as per the Automotive Component Manufacturers Association (ACMA). The domestic demand came particularly from the passenger vehicles segment.

The exports of auto components during this period increased by 8.6% to US$ 10.1 billion (Rs. 79.03 trillion), whereas the imports jumped by 17.2% to US$ 10.1 billion (Rs. 79.8 trillion).

Mr. Sunjay Kapur, President, ACMA said that the availability of semiconductors, high input raw-material costs and non-availability of containers helped in driving the first half of FY22-23.

Mr. Vinnie Mehta, Director General, ACMA said, “in the first half of FY22-23, 47% of revenue to the supply to the Original Equipment Manufacturers (OEMs), which is US$ 28.6 billion, came from passenger vehicles. Interestingly, in the first half of last fiscal, the passenger vehicles accounted for about 38% of our revenue from the OEM". He further added that the demand has shifted towards SUVs and the two-wheelers market performed well as it accounted for 21% of the revenue in H1. The components industry last year closed with a trade surplus of US$ 700 million and it has become finely balanced in the current fiscal. "The sharper growth in the import has been because of the uptick in the domestic market, very much correlated to growth in the domestic market for the OEM segment," he added.

ACMA stated that the aftermarket segment registered an increase of 8% to US$ 5.4 billion (Rs. 42,007 crores) in H1 2021-22.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.