Indian Auto Components Industry Soars with 10% Growth in FY 2024

ENA Sectors 2024-09-26 16:23:01 New Delhi, Sep 26 (KNN) The Indian auto components industry has solidified its position on the global stage, reporting a robust 10 per cent growth in the financial year 2024. This surge is primarily attributed to a 9 per cent increase in vehicle production and sales, reflecting the sector's resilience and adaptability. Notably, India has managed to maintain a favourable trade balance, with exports exceeding imports by USD 300 million, a significant improvement compared to the previous fiscal year. Upkar Singh, President of the Chamber of Industrial and Commercial Undertakings (CICU), highlighted that the latest figures from the Auto Component Manufacturers Association (ACMA) indicate Punjab's vital role in this growth, contributing up to 10 per cent of the total exports. The state is home to major auto component industries concentrated in Ludhiana, Jalandhar, Gobindgarh, Mohali, and Khanna. Singh remarked, It is a sign of growth that India positions itself as the third largest auto industry globally across various segments. The country's achievements in the automotive sector are noteworthy. India leads as the largest manufacturer of tractors and three-wheelers, ranks second in two-wheeler production, third in the global construction equipment market, and fourth in passenger vehicle manufacturing. The auto components sector plays a crucial role in enhancing India's global trade footprint, with significant exports directed towards the United States, Germany, Turkey, Brazil, the United Kingdom, Italy, Bangladesh, Thailand, Mexico, and the UAE. A recent statement from Rahul Ahuja, an auto-components dealer and former Chairman of the Confederation of Indian Industry (CII), underscored that the U.S. alone accounts for 27 per cent of total exports from India, followed by 8 per cent to Germany and 5 per cent to Turkey. Ahuja, who attended the IAA Transportation Show in Europe—a premier event showcasing innovations in logistics and commercial vehicles—stressed Indias growing significance in the international automotive landscape. The upward trend in the auto sector is evident across various segments. Two-wheeler production experienced a notable 10 per cent rise, with specific segments like 350cc and 500cc witnessing exceptional growth rates of 33 per cent and 55 per cent, respectively. Passenger vehicle production also saw a 7 per cent increase, with utility vehicles now comprising 56 per cent of total production, up from 49 per cent in the previous year. Additionally, electric vehicles now contribute 6 per cent to the overall sales value of auto components. As the industry continues to expand, the contributions from key regions, especially Punjab, are instrumental in reinforcing India's status as a global automotive powerhouse. With a positive outlook, the Indian auto components sector is poised for further growth, reflecting the nations commitment to innovation and quality in automotive manufacturing. (KNN Bureau) 39418 https://knnindia.co.in/news/newsdetails/sectors/indian-auto-components-industry-soars-with-10-growth-in-fy-2024 2024-09-26 16:23:01 knnindia.co.in Indian Auto Components Industry Soars with 10% Growth in FY 2024