New Delhi, Oct 29 (KNN) In FY23 the auto-part revenues of MSMEs is expected to grow by 16-18 per cent YoY on demand recovery for Tier-1 suppliers catering to OEMs, as per CRISIL.

Accounting for a fourth of the industry which saw a plunge in FY21 and rebounded strongly in FY22 is expected to grow in FY23.

CRISIL Research expects the auto-components industry’s revenue to grow 19-21 per cent year-on-year (YoY) in the current fiscal year (FY23).

According to CRISIL it will driven by four tailwinds: strong demand from the original equipment manufacturer (OEM) segment, with sales of (PVs) expected to surpass pre-Covid levels and resilience in tractor demand; sales of CVs and two-wheelers recovering from the pandemic-driven slump over FY21 and FY22.

It will also see improving exports triggered by the supply-chain derisking strategy of global OEMs; and demand from the aftermarket segment.  

Micro, small and medium enterprises (MSMEs) in the automotive components sector should see higher growth as well, but will lag average industry revenue growth owing to lack of vertical integration.  (KNN Bureau)