ACMA: Auto parts industry up 35% in H1 at $34 billion

Chennai: The Indian auto component industry clocked a turnover of nearly $34 billion in the first half of fiscal 2022-23, up nearly 35% over the same period last year riding on top gear domestic demand. According to data released by the Automotive Component Manufacturers Association of India (ACMA), exports grew by 8.6% to just over $10 billion while imports grew 17% to $10 billion.The aftermarket was up 8% while component sales to vehicle manufacturers in the domestic market grew 46%. However, the industry cautioned about the slowdown in the US and recessionary trends in Europe both of which will be headwinds going ahead. Sunjay Kapur, president, ACMA and chairman, Sona Comstar said, “The war and recession in Europe are definite headwinds and with volume drop in Europe and the US, Indian auto components industry will look at other markets where we’re well positioned to grow like Latin America, South East Asia and Africa. The fear is that the conflict has not ended and European volumes will continue to come down,” he said.Exports of auto components grew from $9.3 billion in H1 2021-22 to $10 billion this time round with north America accounting for 33% and showing an increase of 12% while Europe and Asia, accounting for 30% and 26% respectively up 4 and 11%.The good news is that domestic demand is on full trot though the increase in demand for higher end SUVs has also meant higher import bills particularly for electronic components. Imports of auto components grew 17% from nearly $9 billion in H1 2021-22 to $10 this half year. Asia accounted for 65% of imports followed by Europe and North America with 26 and 8% respectively. Imports from Asia grew 21%, from Europe by 6% and from North America by 29%.“With growth in consumption of EVs, components industry is making steady investments as also acquiring technology companies,” said Kapur. The industry’s capex cycle is back “and given that we’re seeing growth the capex will be going into future technology and electrification,” he added.