Riding high on robust vehicle sales India's auto parts makers recorded 34.8 percent growth in revenue at Rs 2.65 lakh crore in the fiscal first half from a year earlier, showed data issued on Wednesday by the Automotive Component Manufacturers Association (ACMA).

Riding high on robust vehicle sales, India's auto parts makers recorded 34.8 percent growth in revenue at Rs 2.65 lakh crore in the fiscal first half from a year earlier, according to data issued on Wednesday by the Automotive Component Manufacturers Association (ACMA).

According to Vinnie Mehta, director general, ACMA, with vehicle sales and exports gaining traction month-on-month, the auto component industry demonstrated growth of Rs 2.65 lakh crore between April 2022 to September 2022 of FY2022-’23.

"Steady growth was witnessed in all segments – supply to OEMs, exports and also the aftermarket,” Mehta says. “Exports grew by 8.6 percent to USD 10.1 billion (Rs 79,033 crore), while imports grew by 17.2 percent, also to USD 10.1 billion (Rs 79,815 crore). The aftermarket, estimated at Rs 42,007 crore, also witnessed a growth of 8 percent. Component sales to OEMs in the domestic market grew by 46 percent to Rs 2.23 lakh crore.”

Exports of auto components grew by 8.6 percent to USD 10.1 billion (Rs 79,033 crore) in H1 2022-’23 from USD 9.3 billion (Rs 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 an increase of 4 and 11 per cent.

With vehicle sales across all segments reaching the pre-pandemic levels and with 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 a steady growth in both domestic and the international markets in the first half of FY23, said ACMA president Sunjay Kapur, who is also the chairman of SONA Comstar.

On the industry outlook, he elaborated, "With the growth in consumption of EVs, we are witnessing a fast transformation of the auto components sector 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 a medium to long-term outlook, we need to be wary of the impending recession in Europe and the US as also the supply chain issues which are not fully behind us.”

Imports of auto components grew by 17.2 percent from USD 8.7 billion (Rs 64,310 crore) in H1 2021-’22 to USD 10.1 billion (Rs 79,815 crore) in H1 2022-’23. Asia accounted for 65 percent of imports followed by Europe and North America, with 26 per cent and 8 per cent, respectively. Imports from Asia grew by 21 percent, from Europe by 6 per cent and from North America by 29 percent.

The aftermarket during the period under review witnessed a growth of 8 percent to Rs 42,007 crore from Rs 38,895 crore  as compared to the same period a year ago.