Auto Parts Industry’s Turnover Up 32.8% To Rs 5.6 Lakh Cr In FY23: ACMA

New Delhi, Aug 7 (KNN) The Indian auto parts industry witnessed a 32.8-percent growth at Rs. 5.60 lakh crore for the period April 2022 to March 2023, vis-à-vis Rs 4.20 lakh crore earned in the corresponding period of FY22, according to the Automotive Component Manufacturers Association of India (ACMA).

ACMA in its Industry Performance Review report for fiscal year 2022-23 revealed that the industry also outpaced its highest-ever turnover of USD 57.1 billon (as per prevalent exchange rates) in FY19.

Furthermore, EVs accounted for 2.7 per cent of the turnover, up from 1 per cent in FY22, it said.

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. 

“The strong rebound in vehicle sales in the domestic market also led to sharper rise in imports that has translated into trade deficit this year,” he said.

As per the report, 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 per cent to Rs 1.61 lakh crore in 2022-23, in contrast to Rs. 1.41 lakh crore 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.

The association also revealed that imports grew by 33 percent to Rs 1.36 lakh crore, leading to a trade surplus of USD 700 million. The aftermarket, estimated at Rs 74,203 crore, also witnessed a steady growth of 15 per cent. Component sales to OEMs in the domestic market grew by 22 per cent to Rs 3.41 lakh crore.

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. 

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.

Exports grew by 5.2 percent to Rs. 1.61 lakh crore (USD 20.1 billion) while imports grew by 10.9 percent to Rs. 1.63 lakh crore (USD 20.3 billion). 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. (KNN Bureau)