EV components manufacturing gathers pace

February 4, 2023 11:50 am

The industry is optimistic about the near-term future. Indian Auto Component Industry grew 34.8 per cent to Rs. 2.65 lakh crore in the first half of 2022-23.

The Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s auto component manufacturing industry, recently announced the findings of its first industry performance review for half of fiscal 2022–23. The turnover of the automotive component industry stood at Rs. 2.65 lakh crore (USD 33.8 billion) for the period April 2022 to September 2022, registering a growth of 34.8 percent over the first half of the previous year. Commenting on the performance of the auto component industry in India, Vinnie Mehta, Director General, ACMA, said, “With vehicle sales and exports gaining traction, month-on-month month, the auto component industry demonstrated growth of 34.8 percent scaling a turnover of Rs. 2.65 lakh crore (USD 33.8 billion) in the first half of FY 2022–23. Steady growth was witnessed in all segments: supply to OEMs, exports, and the aftermarket. Exports grew by 8.6 percent to USD 10.1 billion (Rs. 79.03 lakh crore), while imports grew by 17.2 percent to USD 10.1 billion (Rs. 79.8 lakh crore). The aftermarket, estimated at Rs. 42,007 crores, 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. Sharing his insights on the performance of the auto component industry, Sunjay Kapur, President ACMA and Chairman Sona Comstar, said, “With vehicle sales across all segments, reaching the pre-pandemic levels and 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 steady growth in both domestic and the international markets in the first half of FY2022-23. With domestic manufacturing of “With vehicles and components gathering pace, imports also witnessed an uptick.”

Elaborating on the mood of the industry and the outlook for the near- to mid-term future, Kapur mentioned, “As we advance, I am optimistic that the current fiscal year will witness another good performance from the auto components sector. Further, with growth in EV consumption, we are seeing a fast transformation of the auto components sector. Automotive Component Manufacturers Association of India 2 is integral to the EV manufacturing supply chain. The components industry is making steady investments as well as acquiring technology companies.