In 2022-23, exports grew by 5% to Rs 1.61 lakh crore, while imports increased by 11% to Rs 1.63 lakh crore, according to the ACMA.
The aftermarket, estimated at Rs 85,333 crore, also experienced steady growth of 15%, while component sales to OEMs in the domestic market grew by 39.5% to Rs 4.76 lakh crore, as reported by ACMA.
“With significant improvements in semiconductor availability, raw material costs, and logistics, the vehicle industry is expected to continue performing well in FY24, which is beneficial for the auto components sector,” noted Sunjay Kapur, President of ACMA.
Despite facing disruptions due to the pandemic, the automotive value chain has recovered well, with vehicle sales in the passenger vehicle (PV), commercial vehicle (CV), and tractor segments reaching pre-pandemic levels. The two-wheeler industry has also made a strong recovery, Kapur added. When asked about the expected growth for the industry in the current fiscal year, Kapur stated, “It should be double-digit.” ACMA Director General Vinnie Mehta mentioned that the industry aims to increase exports and reduce imports, particularly from China, which currently accounts for about 30% of total imports. Mehta highlighted that the industry has made progress in reducing the trade deficit, going from a peak deficit of USD 2.5 billion a few years ago to a deficit of USD 200 million in terms of imports.
“We are continuously working with other industry bodies like SIAM to enhance exports and reduce imports,” Mehta said.
ACMA reported a 39.5% growth in auto component sales to OEMs in the domestic market, amounting to Rs 4.76 lakh crore compared to the previous year.
“Thanks to strong vehicle sales, a robust aftermarket, and steady exports, the auto component industry achieved its best-ever performance in FY23,” said Mehta.
Furthermore, Kapur noted that despite recessionary trends in Europe and the US, which are key export destinations for the auto components industry, there has been steady growth in exports.
“The sharp rise in imports this year can be attributed to the strong rebound in vehicle sales in the domestic market,” he added.
The ACMA represents over 850 manufacturers, accounting for more than 90% of the auto component industry’s turnover in the organized sector.