ACMA expects auto industry to register 7-10% growth in FY25
Though the off take of vehicles, particularly in the passenger vehicle and commercial vehicle segments, have been slower in the first quarter of the year, the momentum is likely to build up in the coming months, ACMA President and Subros MD, Shradha Suri Marwah told Autocar Professional.
India's auto component industry’s turnover during the current financial year (FY25) is likely to grow 7-10% on a year-on-year basis, according to senior officials from the Automotive Component Manufacturers Association of India (ACMA).
Though the off-take of vehicles, particularly in the passenger vehicle and commercial vehicle segments, have been slower in the first quarter of the year, the momentum is likely to build up in the coming months, ACMA President and Subros MD, Shradha Suri Marwah told Autocar Professional.
ACMA is optimistic about growth given the strong macro-economic indicators, government policies and over 7% growth projected for the Indian GDP. They also expect the government to soon roll out the third phase of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) scheme, which could boost the electric vehicle sales in the country.
During the previous financial year (FY24), the industry clocked a turnover of Rs 6.14 lakh crore ($74.1 billion), representing a growth of 9.8% on a year-on-year basis. The industry also posted a trade surplus of $300 million during the year, as exports grew 5.5% to Rs $21.2 billion while imports rose by just 3% to $20.9 billion.
“This year, we are witnessing good offtake in the domestic segment. Exports are likely to be stable, with growth in single digits expected,” ACMA Director General Vinnie Mehta noted. Electric vehicle manufacturing accounted for 6% of the total industry turnover in FY24, up from 3% in the year-ago period.
Autocar Professional has reported that the industry is expected to invest $2.5-3 billion during the current financial year, with a significant part of it going into capacity expansion. Last year, the industry is estimated to have invested in the range of $3-4 billion.
RELATED ARTICLES
Attero to Invest ₹100 Crore to Scale Rare Earth Recycling Capacity to 30,000 Tonnes
Investment supports India’s National Critical Mineral Mission, with a focus on reducing import dependence and enhancing ...
Uno Minda Approves Rs 210 Crore Manufacturing Facility for EV Casting Division
The Committee of the Board of Directors approved the Detailed Project Report for setting up of new manufacturing facilit...
HMSI, Delhi Traffic Police Train Over 1200 Students in Road Safety Camp
The 19-day summer camp aimed to build foundational road safety awareness among youth, aligning with HMSI’s broader goal ...