Indian Auto Component Industry Records 23 Per Cent Growth In FY 2021-22; Clocks Highest Ever Turnover

Auto Component Manufacturers Association of India (ACMA) has released its Indian auto component sector's annual performance report. Indian Auto Component Industry has clocked highest-ever turnover of Rs. 4.2 lakh crore recording a growth of 23 per cent in FY 2021-22. In the same period, auto component sales to OEMs in the domestic market grew 22 per cent at Rs. 3.41 lakh crore. According to ACMA, enhanced raw material prices and consumption of increased value-added components along with shift in market preference towards larger and more-powerful vehicles contributed to the increased turnover of the auto components sector. Exports: Exports of auto components witnessed growth of 43 per cent at Rs. 1.41 lakh crore in FY 2021-22 in contrast to Rs.0.98 lakh crore in 2020-21. Component imports grew by 33 per cent in FY 2021-22 at Rs.1.36 lakh crore from Rs. 1.02 lakh crore in FY 2020-21.

Commenting on the performance of the auto component industry, Vinnie Mehta, Director General, ACMA said, "Despite the supply-side issues, as vehicle sales and exports gradually gained traction, month-on-month, the auto component industry demonstrated a remarkable performance in FY2021-22. Significant growth was witnessed across all segments including supply to OEMs, Exports as also the Aftermarket. In this backdrop the component industry sized-up to Rs.4.20 lakh crore (USD 56.5 billion) registering 23 per cent growth, thus outpacing its highest ever turnover of Rs.3.95 lakh crore in FY18-19. Exports grew by 43 per cent to Rs.1.41 lakh crore (USD 19.0 billion) while imports grew by 33 percent to Rs.1.36 lakh crore (USD 18.3 billion) leading to trade surplus of USD 700 million. The Aftermarket, estimated at Rs. 74,203 crore also witnessed a steady growth of 15 per cent. Component sales to OEMs in the domestic market grew by 22 per cent to Rs.3.41 lakh crore."

The auto component sector has been increasing its exports for the last few years in a bid to maintain trade surplus along with promoting domestic sales leading to increase in local manufacturing of vehicles. North America accounted for 32 per cent of exports witnessing a growth of 46 percent while Europe accounted for 31 per cent and Asia for 25 per cent, recording 39 per cent and 40 per cent uptick respectively. The key export items included drive transmission & steering, engine components, body/chassis, suspension and braking among others. As far as import is concerned, Asia accounted for 65 per cent of imports dominated by China which alone contributed 30 per cent, followed by Europe and North America at 27 per cent and 7 per cent respectively. Aftermarket: Increased movement of vehicles post-pandemic and surge in demand for used- vehicles led to buoyancy in the aftermarket, across all segments. The turnover of the aftermarket in FY 2021-22 stood at Rs. 74,203 crore.