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Auto component industry’s turnover rises 9.8% in FY24: ACMA

26 Jul 2024 Evaluate

The Automotive Component Manufacturers Association of India (ACMA) has said that the turnover of India’s automotive component industry registered a growth of 9.8 per cent to Rs 6.14 lakh crore in the financial year 2023-24 (FY24). The industry had reported a turnover of Rs 5.59 lakh crore in the 2022-23 financial year. It stated that component supply to original equipment manufacturers (OEMs) in the domestic market grew by 8.9 per cent to Rs 5.18 lakh crore, with supply to the EV manufacturing industry accounting for 6 per cent of the total component production in the country.

ACMA said the aftermarket, estimated at Rs 93,886 crore, also witnessed a growth of 10 per cent in FY24. Apart from an increase in vehicle production, higher value addition from the component sector has led to growth in the auto components sector. Whilst overall merchandise exports from India witnessed degrowth in FY24, auto components exports have grown despite geopolitical challenges and there is an increase in logistics costs. That apart, growth in imports has been comparatively lesser, leading to a trade surplus, indicating thrust by the industry on front of localisation.

On the business outlook, it stated that steady growth in the vehicle industry has resulted in the industry reaching pre-pandemic levels of performance in FY24 in most segments. However, the first quarter of FY25 witnessed somewhat slower offtake in vehicle sales, especially in passenger vehicles and commercial vehicles, given the high base, due to inclement weather conditions and elections. With strong macro-economic indicators, conducive government policies and over 7 per cent growth projected for the Indian GDP, it is hopeful that the auto components industry will continue to perform well in FY25. 

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