Auto Component Industry Defies Odds with 11% Growth

The automotive components industry expanded by 11% to Rs 3.32 lakh crore in the first half of the fiscal year. Despite moderate passenger and commercial vehicle sales, the sector showed resilience in both domestic and international markets. Export challenges include increased freight costs, yet investments in technology and localization continue.

The automotive components industry has reported an 11% growth year-on-year, reaching a turnover of Rs 3.32 lakh crore in the first half of the current fiscal. This expansion is noted despite geopolitical challenges impacting exports, according to the Automotive Component Manufacturers Association of India (ACMA).

The first half of FY 2024-25 saw vehicle sales across all segments returning to pre-pandemic levels, sparking steady growth in both domestic and international auto component markets. However, passenger and commercial vehicle sales have been moderate compared to two-wheelers, according to ACMA President Shradha Suri Marwah.

The industry continues to combat export delivery and freight challenges while remaining robust in value terms. With investments aimed at higher value addition, technology upgrades, and localization, the sector is poised for continued success, said ACMA Director General Vinnie Mehta. Export values rose to USD 11.1 billion, with a surplus of USD 150 million amid growing domestic supplies.

(With inputs from agencies.)