Transformation to EV components manufacturing gathers pace
December 22, 2022 2:19 pm
Indian Auto Component Industry grows 34.8 per cent to ₹. 2.65 lakh crore (USD 33.8 billion) in first-half of 2022-23.
Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s auto component manufacturing industry recently announced the findings of its first industry performance review. half of fiscal 2022–23. The turnover of the automotive component industry stood at ₹. 2.65 lakh crore (USD 33.8 billion) for the period April 2022 to September 2022, registering a growth of 34.8 percent over the first half of the previous year.
Commenting on the performance of the auto component industry in India, Vinnie Mehta, Director General, ACMA, said, “With vehicle sales and exports gaining traction, month-on-month month, the auto component industry demonstrated a growth of 34.8 percent scaling a turnover of ₹. 2.65 lakh crore (USD 33.8 billion) in the first half of FY 2022–23. Steady Growth was witnessed in all segments: supply to OEMs, exports, and the aftermarket. Exports grew by 8.6 percent to USD 10.1 billion (₹. 79.03 lakh crore), while imports grew by 17.2 percent to USD 10.1 billion (₹. 79.8 lakh crore). The aftermarket, estimated at ₹. 42,007 crore also witnessed a growth of 8 percent. Component sales to OEMs in the domestic market grew by 46 percent to ₹. 2.23 lakh crore.
Sharing his insights on the performance of the auto component industry, Sunjay Kapur, President and ACMA Chairman Sona Comstar said, “With vehicle sales across all segments, reaching the pre-pandemic levels and moderation in the supply-side issues such as availability of semiconductors, high input raw-material costs, and non-availability of containers, the auto components sector witnessed steady growth in both domestic and the international markets in the first half of FY2022-23. with domestic manufacturing of “With vehicles and components gathering pace, imports also witnessed an uptick.”
Elaborating on the mood of the industry and the outlook for the near- to mid-term future, Kapur mentioned, “Going forward, I am optimistic that the current fiscal year will witness another good performance from the auto components sector. further, with growth in consumption of EVs, we are witnessing fast transformation of the auto components sector Automotive Component Manufacturers Association of India 2 to be an integral part of the EV manufacturing supply chain. The components industry is making steady investments as well as acquiring technology companies. for medium-long term outlook, we need to be wary of the impending recession in Europe and the US as well. the supply chain issues, which are not fully behind us.
Key findings of the ACMA Industry Performance Review for H1 2022–23:
• Exports: Exports of auto components grew by 8.6 percent to USD 10.1 billion. (₹. 79,033 crore) in H1 2022–23 from USD 9.3 billion (₹. 68,746 crore) in H1 2021–22. North America, accounting for 33 percent of exports, saw an increase of 12 percent. while Europe and Asia, accounting for 30 per cent and 26 per cent respectively also registered increases of 4 and 11 percent, respectively.
• Imports: Imports of auto components grew by 17.2 per cent from USD 8.7 billion (₹. 64,310 crore) in H1 2021–22 to USD 10.1 billion (₹. 79,815 crore) in H1 2022–23. Asia accounted for 65 percent of imports, followed by Europe and North America, with 26 percent and 8 percent, respectively. Imports from Asia grew by 21 percent, from Europe by 6 percent and from North America by 29 percent.
• Aftermarket: The aftermarket in H1 2022–23 witnessed a growth of 8 percent to ₹. 42,007 crore (USD 5.4 billion) from ₹. 38,895 crore (USD 5.3 billion) in H1 2021–22.