WionDrive News Desk 
India’s auto component industry has achieved a remarkable milestone, recording its best-ever turnover of approximately Rs 560,000 crore (US$ 69.7 billion) in FY2023, marking a robust growth of 32.8% over the previous fiscal year. This achievement comes on the back of robust domestic vehicle sales, a thriving aftermarket, and resilient exports despite challenging global market conditions. The Automotive Component Manufacturers Association of India (ACMA) shared these impressive findings from its Industry Performance Review for FY2023.
The surge in automobile sales by 20% YoY in FY2023, totaling 21.20 million units, including a record 3.89 million passenger vehicles, has significantly bolstered the component industry. The growing demand in the domestic aftermarket and strong exports of made-in-India auto parts have further contributed to the sector’s remarkable growth.
Vinnie Mehta, Director General of ACMA, emphasized the industry’s outstanding performance, stating, “The auto component industry demonstrated its best-ever performance in FY2023, driven by significant vehicle sales, a robust aftermarket, and steady exports. The industry’s turnover reached Rs 5.60 lakh crore, registering a 32.8% growth and surpassing its previous best of Rs 4.20 lakh crore in FY2022. Exports grew by 5.2% to Rs 1.61 lakh crore, while imports increased by 10.9% to Rs 1.63 lakh crore. The aftermarket, estimated at Rs 85,333 crore, witnessed steady growth of 15%.”
Sunjay Kapur, President of ACMA and chairman of Sona Comstar, highlighted the increased value addition from the component sector and its impact on the industry’s performance. Despite recessionary trends in Europe and the US, key export destinations, exports from India’s auto components industry have remained resilient. The rebound in domestic vehicle sales, including passenger, commercial, and tractor segments, has driven growth and mitigated supply-side challenges.
Looking forward, Kapur expressed optimism about the industry’s outlook. He noted that disruptions caused by the pandemic have been mitigated, and the vehicle industry is poised to continue performing well in FY2024. He also mentioned the industry’s efforts to reduce dependency on imports, focusing on increased exports and localized production.
ACMA is actively collaborating with Tier-1 suppliers and OEMs to enhance global sourcing strategies from India. The industry’s ability to adapt to technology and provide components has drawn interest from companies around the world, contributing to the significant uptick in exports.
The auto component industry’s performance in FY2023 is marked by strong sales to OEMs, exports growth of 5.2%, import growth of 10.9%, and a buoyant aftermarket. Despite potential headwinds, such as geopolitical tensions and high GST rates on components, ACMA remains confident in the industry’s trajectory. The goal of achieving $100 billion peak turnover by FY2025 and a strong double-digit growth in FY2024 indicates a positive path forward for India’s auto component industry.
