Auto component sector sees record turnover of Rs 4.2 trillion in FY22
Equipment

Auto component sector sees record turnover of Rs 4.2 trillion in FY22

Indian auto components industry clocked its highest-ever turnover of Rs 4.2 trillion in 2021-22, registering a growth of 23% on the back of strong performance in exports and aftermarket, industry body ACMA said. Aftermarket denotes the market for auto components that are used to replace the original auto parts when they are not functioning properly.

At a virtual press conference, Automotive Component Manufacturers’ Association of India (ACMA) stated while auto parts’ imports rose 33% in 2021-22, exports grew 43% in the same period. The auto component industry in India exported components worth Rs 1.41 trillion in 2021-22, it said, adding that auto parts worth Rs 1.36 trillion were imported in 2021-22.

Around 30 per cent of total auto components’ import is from China, giving it the number one position. Germany is the second-largest source of auto parts for India, accounting for around 11 per cent, ACMA noted.

“North America, which accounts for 32% exports, saw a 46 per cent growth. Europe, accounting for 31 per cent and Asia for 2%, respectively, grew 39% and 40%,” ACMA noted.

Key items exported in the last financial year were drive transmission and steering, engine components, body, chassis, suspension, and brakes. The turnover of auto components’ aftermarket stood at Rs 74,203 crore in 2021-22, clocking a growth rate of 15% over the previous year. The aftermarket’s turnover crossed the pre-pandemic levels in 2021-22 because of more vehicles on road, prolonged usage of vehicles, increase in demand of second-hand vehicles, increase in commodity prices, and emergence of new sales channels such as online retailers and multi-brand outlets, ACMA noted.

ACMA said shortage of chips, high raw material and logistics cost, availability of containers for transport of auto components, increasing inflation, rising fuel prices, high insurance cost, less than expected growth in two-wheeler segment and high GST rates on auto components are some of the headwinds the auto component industry is facing in the country. However, it also mentioned that the sector is also getting the benefit of multiple tailwinds such as high estimated GDP growth in 2022-23, strong demand in domestic vehicle market, surge in exports, focus on clean and new technology, states’ electric vehicles policy and the government’s production-linked incentive (PLI) scheme.

Indian auto components industry clocked its highest-ever turnover of Rs 4.2 trillion in 2021-22, registering a growth of 23% on the back of strong performance in exports and aftermarket, industry body ACMA said. Aftermarket denotes the market for auto components that are used to replace the original auto parts when they are not functioning properly. At a virtual press conference, Automotive Component Manufacturers’ Association of India (ACMA) stated while auto parts’ imports rose 33% in 2021-22, exports grew 43% in the same period. The auto component industry in India exported components worth Rs 1.41 trillion in 2021-22, it said, adding that auto parts worth Rs 1.36 trillion were imported in 2021-22. Around 30 per cent of total auto components’ import is from China, giving it the number one position. Germany is the second-largest source of auto parts for India, accounting for around 11 per cent, ACMA noted. “North America, which accounts for 32% exports, saw a 46 per cent growth. Europe, accounting for 31 per cent and Asia for 2%, respectively, grew 39% and 40%,” ACMA noted. Key items exported in the last financial year were drive transmission and steering, engine components, body, chassis, suspension, and brakes. The turnover of auto components’ aftermarket stood at Rs 74,203 crore in 2021-22, clocking a growth rate of 15% over the previous year. The aftermarket’s turnover crossed the pre-pandemic levels in 2021-22 because of more vehicles on road, prolonged usage of vehicles, increase in demand of second-hand vehicles, increase in commodity prices, and emergence of new sales channels such as online retailers and multi-brand outlets, ACMA noted. ACMA said shortage of chips, high raw material and logistics cost, availability of containers for transport of auto components, increasing inflation, rising fuel prices, high insurance cost, less than expected growth in two-wheeler segment and high GST rates on auto components are some of the headwinds the auto component industry is facing in the country. However, it also mentioned that the sector is also getting the benefit of multiple tailwinds such as high estimated GDP growth in 2022-23, strong demand in domestic vehicle market, surge in exports, focus on clean and new technology, states’ electric vehicles policy and the government’s production-linked incentive (PLI) scheme.

Next Story
Infrastructure Energy

India, a Global Leader in Green Energy with 214 GW Capacity

As India enters the new year, it concludes 2024 with an impressive 214 GW of installed green energy capacity, positioning the country on track to meet its ambitious target of 500 GW of non-fossil fuel-based energy by 2030, as reported by the Union Ministry of New and Renewable Energy. Between April and November 2024, India added nearly 15 GW of renewable energy capacity—almost double the 7.57 GW added during the same period in 2023. India surpassed the 200 GW milestone in renewable energy capacity in September 2024, reaching 214 GW by November, a 14 per cent increase from 187.05 GW in t..

Next Story
Infrastructure Urban

JSW Group Inks with Maharashtra Government for Rs 3 trillion Investment

The JSW Group signed a MoU with the Maharashtra Government at the World Economic Forum (WEF) in Davos. The company will be investing Rs 3 trillion across key sectors, including steel, renewable energy, electric vehicles, lithium-ion batteries, solar wafer and cell modules, infrastructure and cement. This strategic initiative aims to create thousands of jobs, enhance industrial capabilities, and contribute to sustainable economic growth. As per the MoU, the Government of Maharashtra will facilitate the investment by expediting clearances, providing fiscal incentives, and ensuring the avail..

Next Story
Technology

Microsoft Commits $3 Billion for India’s Digital Infrastructure

Satya Nadella, Chairman and CEO, Microsoft, reportedly revealed that it intends to invest $3 billion in developing data centres and other digital infrastructure in India, marking its largest commitment in Asia. The company plans to allocate the funds over the next two years to build new data centres and upgrade existing facilities. Additionally, the company aims to train 10 million individuals over the next five years to accelerate AI innovation in India. Nadella, a Mangalore University graduate, emphasized the strategic importance of this initiative in strengthening India's AI ecosystem. Thi..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?