$100 Billion Turnover In Sight For Auto Component Industry, Says ACMA Chief
Improved availability of semiconductors, stable raw material costs and growth across markets augured well for the sector.
The turnover of India's auto component industry is expected to witness a double-digit growth in the current fiscal, putting the $100 billion-mark in sight, according to industry body Chairperson Sunjay Kapur.
The turnover rose by one third to its highest-ever $70 billion in the last fiscal, data from the Automotive Component Manufacturers Association of India showed.
"There has been (a) steady growth in exports despite recessionary trends in Europe and the U.S., which are key export destinations for the auto components industry," Kapur said, in a statement on Monday. Strong rebound in vehicle sales in the domestic market also led to a sharper rise in imports, which has translated into a trade deficit this year.
While the exports rose 5% to $20.1 billion, the import grew nearly 11% to $20.3 billion, making it a trade deficit of $200 million for the industry. The deficit in FY23 comes after the industry clocked its first-ever significant trade surplus of $700 million in FY22.
The auto parts makers' association said the improving availability of semiconductors, stable raw material costs and growth across markets augured well for the sector.
The sales in the last fiscal were led by engine components, body, chassis, suspension and braking, drive transmission and steering, and electricals and electronics. The U.S. stood as the biggest export market for the industry, accounting for 32% of the overall exports.
The imports into the country were driven by Asia, with a two third contribution to the overall numbers. China remained the dominant country, with a contribution of 30% to the overall imports into India.
The passenger vehicle segment led in the sales to the vehicle manufacturers by accounting for 44% of the sales, followed by commercial vehicles at 24% and two-wheelers at 18%.
The domestic passenger vehicle industry is expected to grow within the 5–7% range in the fiscal after clocking the highest-ever sales of 38.9 lakh in FY23 that saw it climb to the third biggest market globally.
