Indian Auto Component Industry Shows Strong Growth in FY 2023-24

Key Highlights:

• Total turnover reaches Rs. 6.14 lakh crore (USD 74.1 billion)

• 9.8% growth over the previous year

• Robust performance in both domestic and export markets

• Sales to OEMs Boosted by Increased Vehicle Production

In FY 2023-24, sales of auto components to Original Equipment Manufacturers (OEMs) in India surged by 8.9%, reaching Rs. 5.18 lakh crore (USD 62.4 billion). This growth was driven by the increased production of vehicles, higher consumption of value-added components, and a market shift towards larger and more powerful vehicles.

Export Performance

Exports of auto components grew by 5.5%, totaling Rs. 21.2 billion (USD) in 2023-24, compared to USD 20.1 billion in the previous year. Key markets included North America, which accounted for 32% of exports, showing a growth of 4.5%. Europe and Asia followed, with Europe growing by 12% and Asia remaining flat. The primary export items were drive transmission & steering, engine components, body & chassis, and suspension & braking systems.

Import Trends

Imports of auto components also saw an increase, rising by 3.0% to USD 20.9 billion from USD 20.3 billion in the previous year. Asia was the largest supplier, accounting for 66% of imports, followed by Europe and North America at 26% and 8%, respectively. Key import items included engine components, body & chassis, suspension & braking systems, and drive transmission & steering.

Aftermarket Growth

The aftermarket sector experienced a significant boost due to the increased movement of vehicles and higher demand for used vehicles. The turnover in this segment reached Rs. 93,886 crore (USD 11.3 billion) in FY 2023-24, up from Rs. 85,333 crore (USD 10.6 billion) in the previous year. This growth was attributed to enhanced e-commerce penetration and the sector's gradual evolution into a more organized structure.

Industry Outlook

Vinnie Mehta, Director General of ACMA, highlighted the positive impact of stable vehicle production and the robust aftermarket on the industry's growth. Shraddha Suri Marwah, President of ACMA and CMD of Subros, emphasized the contribution of higher value addition from component makers and the growth in auto component exports despite global challenges. The industry remains optimistic for FY 2025, expecting continued growth supported by strong macro-economic indicators, government policies, and an anticipated over 7% growth in Indian GDP.

Carbike360 Says

The Indian auto component industry has shown remarkable resilience and growth in FY 2023-24, driven by robust vehicle production, strong export performance, and a thriving aftermarket sector. The outlook for the coming year remains positive, with expectations of sustained growth and further industry consolidation.