The Automotive Component Manufacturers Association of India (ACMA) predicts that India’s auto-components industry will experience growth of 10-15% in the fiscal year 2023-24, driven by demand in both domestic and export markets.
In the previous fiscal year 2021-22, the auto components industry saw a turnover of USD 56.5 billion, reflecting a growth rate of 23% compared to the previous year. For the current fiscal year, the industry is expected to conclude with a growth rate of 15%.
Speaking at an event organized by the industry body, ACMA Director General, Vinnie Mehta, reported that as of December 2022, the country’s exports and imports had remained well-balanced, with a value of USD 15.1 billion.
Meanwhile, ACMA President Sunjay Kapur noted that the domestic industry was showing positive signs of growth. The Indian auto-components industry is currently benefiting from the transition to electric vehicles in developed markets in the West. Furthermore, many conventionally produced components have shifted their production to India due to its lower cost.
Kapur added that the Indian auto-components industry was looking to expand into new markets such as Eastern Europe and South America to further increase demand.
The growth in the Indian auto-components industry is not only driven by the domestic market but also by the surge in demand from other markets. As a result, the industry is anticipated to experience robust growth in the years to come.
However, industry experts also note that the sector faces challenges, including the increasing trend of localization and the reduction in the number of suppliers for international Original Equipment Manufacturers (OEMs). To maintain growth momentum, industry players need to focus on developing advanced technologies and production capabilities.
To that end, the Indian government has launched several initiatives to support the sector, including a PLI (Production Linked Incentive) scheme, which aims to incentivize the production of advanced components in India. This scheme has attracted significant investment from leading industry players and is expected to contribute significantly to the growth of the Indian auto-components industry in the coming years.
India’s auto-components industry is poised for significant growth in the coming years, driven by both domestic and export markets. With the government’s support and the industry’s focus on advanced technology and production capabilities, the industry can continue to maintain its growth momentum and compete globally.
