The majority of the industry's revenue, accounting for 85%, was generated through the sale of components to domestic vehicle Original Equipment Manufacturers (OEMs), reaching Rs 254,885 crore and showing a 13.9% year-on-year growth. Meanwhile, exports in the first half of the current fiscal year increased by 8.7%, totalling Rs 85,870 crore ($10.4 billion) compared to H1 FY23's Rs 79,033 crore. The aftermarket sector experienced a 7.5% year-on-year growth, concluding at Rs 45,158 crore, attributed to the flourishing used vehicle market and the ongoing formalisation of the repair and maintenance sector (H1 FY23: Rs 42,007 crore).

In the domestic market, passenger vehicle (PV) OEMs contributed more than 46% to the component industry's revenue, followed by two-wheeler manufacturers at 19%, and Medium and Heavy Commercial Vehicle (M&HCV) at 7%, and Light Commercial Vehicle (LCV) players at 16%. Despite a 50% growth in electric vehicle sales in H1 FY24, engine components (21%) and drive transmission and steering components (21%) remained the predominant categories procured by vehicle manufacturers and the aftermarket.

Other significant parts categories supplied by Indian automotive component manufacturers in H1 FY24 in the domestic market included electricals and electronics (15%), suspension and braking components (14%), and body and chassis systems (10%). According to the Automotive Component Manufacturers Association of India (ACMA), there has been a noticeable shift in consumer preferences, with larger and more powerful vehicles experiencing higher growth across segments.

In the PV segment, utility vehicles, including SUVs, claimed a 57% share in H1 FY24, marking an 8%age point increase from the 49% share in H1 FY23. Additionally, there was a substantial 70% rise in the sales of motorcycles with a 200-250cc engine capacity, while M&HCVs maintained a 35% share among all commercial vehicles in the first half of the ongoing fiscal.