The Indian auto component industry achieved a notable growth rate of 9.8% in FY24, reaching INR 6.14 lakh crore (USD 74.1 billion). This impressive performance, detailed in the Automotive Component Manufacturers Association of India (ACMA) Industry Performance Review for FY 2023-24, reflects significant progress and resilience in the sector despite various challenges.
Vinnie Mehta, the Director General of ACMA, stated that sales of domestic components to OEMs increased by 8.9%, reaching a total of INR 5.18 lakh crore. The sector of electric vehicles (EV) alone was responsible for 6% of overall component manufacturing. Despite geopolitical tensions and rising logistics costs, exports increased by 5.5% to USD 21.2 billion. Imports rose by 3% to reach USD 20.9 billion, leading to a trade surplus of USD 300 million.
Shradha Suri Marwah, President of ACMA and CMD of Subros, highlighted the industry’s ability to adapt and thrive despite global uncertainties. While vehicle sales saw a slight dip in the first quarter of FY25 due to adverse weather and election-related factors, Marwah remains optimistic. She expects continued strong performance in FY25, supported by positive macroeconomic indicators and government policies.
The after-market segment expanded significantly, achieving a turnover of INR 93,886 crore (USD 11.3 billion) for FY 2023-24, a 10% increase from the previous year. This growth was driven by improved traffic flow, higher demand for used vehicles, and greater e-commerce adoption in rural areas.
According to the ACMA report, the auto component industry is set to remain a key sector of the Indian economy. With sustained growth in car manufacturing and accelerated localization strategies, the industry is well-positioned to explore new opportunities in China and the global market.
Key exports included drive transmission and steering, engines and parts, bodies and chassis, and suspension and braking systems, while imports comprised engines and parts, body and chassis, and drive transmission and steering, primarily sourced from Asia, Europe, and North America.
Additionally, Mehta announced the establishment of the ACMA Mobility Foundation, a new initiative aimed at promoting inclusive growth by integrating innovative startups and non-traditional technology players into the automotive value chain.
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