The auto component industry's FY23 saw its biggest turnover, and it is expecting to see double-digit growth this fiscal year

After recording the highest-ever turnover in 2022-23, the domestic car component sector anticipates double-digit sales growth in the current fiscal year as demand is anticipated to continue strong. The sector had a turnover of Rs. 5.6 lakh crore (US$ 68 billion) in the most recent fiscal year, up 33% from Rs. 4.2 lakh crore (US$ 51 billion) in 2021-22, according to the Automotive Component Manufacturers Association (ACMA). It also explained that in 2022-23, exports grew by 5% to Rs. 1.61 lakh crore (US$ 19 billion) while imports grew by 11% to Rs. 1.63 lakh crore (US$ 20 billion).

The President of ACMA, Mr. Sunjay Kapur, stated that with significant mitigation in the supply-side issues of availability of semiconductors, input raw-material costs, and logistics, the vehicle industry is expected to continue to perform well in FY24, which augurs well for the auto components sector.

He further stated that the automotive value chain faced significant disruptions in the wake of the pandemic, and vehicle sales, especially in the passenger vehicle (PV), commercial vehicle (CV) and tractor segment have now reached pre-pandemic levels. Even the two-wheeler industry has recovered well.

The Director General of ACMA, Mr. Vinnie Mehta, mentioned that the industry is looking to enhance exports while reducing imports, especially from China, which accounts for around 30% of the total imports. He noted that from a peak trade deficit of US$ 2.5 billion a couple of years ago, the industry has moved to a better position with a trade deficit of US$ 200 million in terms of imports.

The ACMA represents over 850 manufacturers, which constitute more than 90% of the auto component industry's turnover in the organized sector.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.