Indian auto components industry grows 34% in H1 FY23: ACMA

New Delhi, Dec 21 (KNN) Riding on the demand for passenger vehicles segment, the auto component industry has been successful in clocking a growth of 34.8 per cent growth to Rs 2.65 lakh crore in first-half of 2022-23, the Automotive Component Manufacturers Association of India (ACMA) said on Wednesday.

During the period, exports of components grew by 8.6 per cent to USD 10.1 billion (Rs 79.03 lakh crore), while imports climbed 17.2 per cent to USD 10.1 billion (Rs 79.8 lakh crore), ACMA said.

Speaking about tremendous growth achieved by the industry, ACMA President Sunjay Kapur said "We've seen great growth come out of passenger cars and commercial vehicles. The festive season was very positive for two-wheelers, and we hope that two-wheelers will be back on the growth track, like they have been in the past.”

He further said moderation in the supply-side issues, such as availability of semiconductors, high input raw-material costs and non-availability of containers, also helped in the growth witnessed in the first half of the ongoing fiscal.

"In the first half, 47 per cent of our revenue to the supply to the OEMs, which is USD 28.6 billion dollars, came from passenger vehicles. Interestingly, in the first half of last fiscal, the passenger vehicles accounted for about 38 per cent of our revenue from the OEM.” ACMA Director General Vinnie Mehta said.

There has been a demand shift towards SUVs, and the value proposition has also been enhanced, he added.

However, he said as the two-wheeler industry was under pressure, it accounted for about 18 per cent of the revenue against 21 per cent in the first half of the last fiscal.

On the export front, the association said it grew by 8.6 per cent to USD 10.1 billion (Rs 79,033 crore) in H1 2022-23 from USD 9.3 billion (Rs 68,746 crore) in H1 2021-22.

Mehta said that while the components industry closed the last fiscal with a trade surplus of USD 700 million, in the current fiscal, it has become neutral with exports and imports finely balanced.

"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.

In terms of new technology, Mehta said electric vehicles accounted for about 1 per cent of the overall turnover of the auto component industry. Although it is growing, it has not created a market shift yet, but the industry sees more contributions from the segment going forward.  (KNN Bureau)