Automotive Component Manufacturers Association of India (ACMA), has released its Industry Performance Review for the fiscal year 2022-23. The turnover of the automotive component industry stood at Rs. 5.60 lakh crore (USD 69.7 billion) for the period of April 2022 to March 2023, registering a growth of 32.89 per cent over the previous year.

The report threw light on the region-wise export in which North America and Europe had the highest share among all the export while Canada and Baltic regions were at the bottom. The report also found that Electric vehicles accounted for 2.9 per cent of vehicles produced and 2.7 per cent of the total component consumption.

The report also looked at shift in the customer preference and found that customers have started to move towards larger and more powerful vehicles across all segments.

Talking about the imports the report said, most imported things were engine components at 31 per cent, while Body/Chassis/BiW were at 18 per cent. “In terms of country, import we are most dependent on China with 30 per cent imports while Germany was found to be at second with 11 per cent share of total imports. In terms of export, USA is the country to which most of the exports is done with 28 per cent of the total component share,” the report found.

Commenting on the performance of the auto component industry, Vinnie Mehta, Director General, ACMA said, “On the back of significant vehicle sales in the country, a robust aftermarket and steady exports, the auto component industry demonstrated its best performance in FY23. The component industry sized up to Rs. 5.60 lakh crore (USD 69.7 billion) registering 32.8 per cent growth, thus outpacing its highest-ever turnover of Rs. 4.20 lakh crore in FY21-22. Exports grew by 5.2 per cent to Rs. 1.61 lakh crore (USD 20.1 billion) while imports grew by 10.9 per cent to Rs. 1.63 lakh crore (USD 20.3 billion). The Aftermarket, estimated at Rs. 85,333 crores also witnessed a steady growth of 15 per cent. Component sales to OEMs in the domestic market grew by 39.5 per cent to Rs. 4.76 lakh crore.”

Sharing his insights on the performance of the industry, Sunjay Kapur, President, ACMA & Chairman, Sona Comstar said, “It is pertinent to note that apart from growth in vehicle sales, significant higher value addition from the component sector has led to its noteworthy performance in FY23. On the front of trade, it is appreciable that there has been steady growth in exports despite recessionary trends in Europe and the US which are key export destinations for the auto components industry. Strong rebound in vehicle sales in the domestic market also led to a sharper rise in imports that has translated into trade deficit this year.”

Elaborating on the outlook for the near future, Kapur mentioned, “Whilst the automotive value-chain faced significant disruptions in the wake of the pandemic, vehicle sales, especially in the PV, CV and tractor segments have now reached pre-pandemic levels. Even the two-wheeler industry has recovered well. With significant mitigation in the supply-side issues of the availability of semiconductors, input raw material costs and logistics, the vehicle industry is expected to continue to perform well in FY24, which augurs well for the auto components sector That apart, exports and growth in domestic aftermarket continue to be robust”

Key findings of the ACMA Annual Industry Performance Review for 2022-23:

Sales to OEMs: Auto Component sales to OEMs, in the domestic market, at Rs. 4.76 lakh crores (USD 59.3 billion) grew 39.5 per cent compared to the previous year. Consumption of increased value-added components and a shift in market preference towards larger and more powerful vehicles contributed to the increased turnover of the auto-components sector.

Exports: Exports of auto components witnessed growth of 5.2 per cent to Rs. 1.61 lakh crore (USD 20.1 billion) in 2022-23 in contrast to Rs. 1.41 lakh crore (USD 19,0 billion) in 2021-22. North America accounting for 32 per cent of exports, saw a growth of 8 per cent Europe accounting for 31 per cent and Asia for 26 per cent grew 3 per cent and 4 per cent respectively

The key export items included drive transmission and steering, engine components, body/chassis, suspension and braking etc.

Imports: The traction in the domestic market is also reflected in imports of components into India. Component imports grew by 10.9 per cent in 2022-23 to Rs. 1.63 lakh crore (USD 20.3 billion) from Rs. 1.36 lakh crore (USD 18.3 billion) in 2021-22. Asia accounted for 66 per cent of imports followed by Europe and North America at 26 per cent and 6 per cent respectively. Imports from Asia grew 12 per cent, while those from Europe by 6 per cent and from North America by 23 per cent.

Aftermarket: Increased movement of vehicles post-pandemic and a surge in demand for used vehicles led to buoyancy in the aftermarket across all segments. The turnover of the aftermarket in FY 2022-23 stood at Rs. 85,333 crore (USD 10.6 billion) compared to Rs. 74,203 crore (USD 10.0 billion) in the previous year.

Turnover data represents the entire supplies from the auto component industry (ACMA members and non-members) to the on-road and off-road vehicle manufacturers and the aftermarket in India as well as exports. This also includes component supplies captive to the OEMS and by the unorganized and smaller players. EV-Component sales to domestic EV-OEMs are also captured in supply to OEMs, this however does not include batteries.

Percentage Growth figures of the total turnover of the auto component industry, sales to OEMS and aftermarket are in Rupee-terms while those of exports and imports are in Dollar-terms