Indian automotive component industry registered a turnover of Rs 4.20 lakh crore ($ 56.5 billion) in FY 2021-22, registering a growth of 23% over the previous year, according to the findings of Automotive Component Manufacturers Association of India (ACMA). 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 ($ 56.5 billion) registering 23% growth, thus outpacing its highest ever turnover of Rs 3.95 lakh crore in FY18-19. Exports grew by 43% to Rs 1.41 lakh crore ($ 19 billion) while imports grew by 33% to Rs.1.36 lakh crore ($ 18.3 billion) leading to trade surplus of $ 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% to Rs 3.41 lakh crore.”

Sharing his insights on the performance of the industry, Sunjay Kapur, President, ACMA & Chairman, Sona Comstar, said, “Whilst the automotive value-chain faced significant disruptions over the last two years in wake of the pandemic, vehicle sales, especially in the PV, CV and tractor segments now seem to have reached the pre-pandemic levels. Of late, there has been some moderation in the supply-side issues of availability of semiconductors, input raw-material costs and availability of containers. Increased value-addition to meet regulatory compliance, fast recovery in external markets and traction in the domestic market, both OEMs and aftermarket have contributed to the remarkable growth of the auto components sector in FY 2021-22.”

Elaborating on the mood of the industry and outlook for the near future, Kapur mentioned, “Going forward, with a slew of new launches, vehicle sales are expected to gain traction during the festive season. Further, increased focus by the auto industry on deep-localisation and the announcements of the PLI schemes by the Government on Advanced Chemistry Cell (ACC) Batteries and Auto & Auto Components will facilitate the creation of a state-of-the-art automotive value chain and aid in developing India into an attractive alternative source of high-end auto components. The component industry is also transforming itself as sales of two-wheeler and three-wheeler EVs gain traction. I am hopeful that the buoyancy in the market will continue through the year and that FY22-23 will witness a healthy performance.”

He added, “Poor offtake of two-wheelers, increase in cost of insurance, high inflation, excessive fuel cost and extreme logistics costs are some of the issues of concern to the industry and do need urgent Government attention."

Exports of auto components witnessed growth of 43% to Rs 1.41 lakh crore ($ 19billion) in 2021-22 in contrast to Rs 0.98 lakh crore ($ 13.3 billion) in 2020-21. North America accounting for 32% of exports, saw a growth of 46%. Europe accounting for 31% and Asia for 25% grew 39% and 40%, respectively. The key export items included drive transmission & steering, engine components, body/chassis, suspension & braking etc.