New Delhi, Dec 21 (KNN) The Automotive Component Manufacturers Association of India (ACMA) revealed a notable 12.6 per cent growth in the turnover of the Indian automobile components industry for the first half of the fiscal year 2023-24 (April-September 2023), on Wednesday.

According to ACMA’s Industry Performance Review for 2023-24, the industry's turnover reached USD 36.1 billion (Rs 2.98 lakh crore), showcasing a substantial increase compared to the corresponding period of the previous fiscal year, which recorded USD 33.9 billion (Rs 2.65 lakh crore).

The Industry exports experienced a 2.7 per cent growth, reaching USD 10.4 billion (Rs 85.87 crore), while imports rose by 3.6 per cent to USD 10.6 billion (Rs 87.42 lakh crore), during the same period.

Notably, the aftersales market showed significant growth, estimated at USD 5.5 billion (Rs 45,158 crore), reflecting a 7.5 per cent increase from USD 5.4 billion (Rs 42,007 crore) in H1FY23.

Vinnie Mehta, Director General of ACMA, expressed optimism, stating that challenges faced during the pandemic, such as logistics costs, semiconductor availability, and raw material prices, have essentially been mitigated.

The revenue distribution in the auto parts industry reveals that passenger vehicles, commercial vehicles, and two-wheelers accounted for 46 per cent, 23 per cent, and 19 per cent, respectively, Mehta added.

Drivetrain and steering parts, he revealed, played a significant role, contributing 30 per cent to the overall business.

Auto component sales to Original Equipment Manufacturers (OEMs) in the domestic market surged to USD 30.8 billion (Rs 2.54 lakh crore), marking a 13.9 per cent growth over the previous year.

ACMA highlighted the increasing consumption of value-added components and a market shift towards larger and more powerful vehicles as contributing factors to the sector's growth.

Shradha Suri Marwah, President of ACMA, conveyed that the industry witnessed steady growth in both domestic and international markets in the first half of FY2023-24.

As per the report, North America and Europe each accounted for 33 per cent of exports, undergoing an increase of 2 and 12 percentage points respectively, and with Asia contributing 24 per cent, experiencing a 4 per cent drop.

On the imports front, Asia dominated with a 63 per cent share, followed by Europe (27 per cent) and North America (9 per cent).

The industry demonstrated robust performance during the last fiscal year, recording a remarkable 32.8 per cent growth in turnover to USD 69.7 billion (Rs 5.60 lakh crore).

ACMA remains confident, projecting a 10-15 per cent growth for the entire financial year.

“Going forward, considering the festive season has gone well with significant sales across most segments of the vehicle industry, I am optimistic that the current fiscal year will witness another good performance from the auto components sector,” said Marwah.

Additionally, she revealed ongoing investments in higher value-addition and localisation to stay relevant in both domestic and international markets.

The industry plans to invest USD 6.5 billion to USD 7 billion over the next five years in capacity expansion and technology upgrading, nearly doubling the investments made in the last five years, as per the report.

(KNN Bureau)