Auto Component Industry grows by 11pc in FY 14-15

Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s Auto Component manufacturing industry, announced the findings of its Industry Performance Review for the fiscal 2014-15. The turnover of the auto component industry stood at Rs. 2.34 lakh crore (USD 38.5 billion) for the period April 2014 to March 2015, registering a growth of 11 pc over the previous year and a CAGR of 11 pc over the last six years. This data represents the entire supply from the auto component industry in India to the on-road and off-road vehicle manufacturers and the aftermarket in India as well as overseas. The data also includes that of captive suppliers to the OEMs and the unorganised and smaller players.

Commenting on the performance of the auto component industry, Ramesh Suri, President, ACMA said, “Despite a challenging year 2013 -14, the auto component industry bounced back registering an impressive growth of 11 pc in 2014-15. In fact, it is also interesting to note that while India’s total exports stagnated, the Indian auto component industry exports grew by 11.4 pc. Consistent growth in the auto component exports is an indication of growing credibility of ‘India made’ components. ACMA has played a critical role in supporting its members in discovering and harnessing new market opportunities, further favourable government policies including the foreign trade policy need to be given due credit for the commendable exports performance.”

Vinnie Mehta, Director General, ACMA commented, “We are pleased with the Auto Component Industry’s performance for FY 14-15 and are confident that driven by ‘Make in India’, it will lead the growth story for India. The auto component industry in India is expected to scale USD 100 billion in turnover by 2020 with exports to grow in range of USD 35-40 billion. During the last fiscal several macro headwinds obstructed the growth in the industry including flagging vehicle sales, high capital costs, high interest rates and slowing down of investment in manufacturing. The industry’s focus on exports, quality and various cost saving initiatives has helped it weather the weak business environment leading to a double-digit growth.”

Key findings of the ACMA Industry Performance Review 2014-15:

• Exports: Exports of auto components grew by 11.4 pc to Rs 68,500 crore (USD 11.2 billion) from Rs 61,400 crore (USD 10.2 billion) in 2013-14, registering a CAGR of 29 percent in the last six years. Europe accounted for 36.9 percent of exports followed by Asia at 25.2 percent and North America at 23.2 percent. Exports to Africa, Latin America and North America increased by 12.6 percent, 4.6 percent and 18.9 percent respectively, over the previous fiscal. The key export items include engine parts, transmission parts, brake system & components, body parts, exhaust systems, turbochargers etc

• Imports: Imports of auto components grew by 7.5 percent to Rs 82,900 crore (USD 13.58 billion) in 2014-15 from Rs 77,160 crore (USD 12.8 billion) in 2013-14; Asia and Europe contributed to 57.9 pc and 32.4 pct of the imports respectively. Asia and Europe contributed to maximum imports followed by North America and Latin America.

• Aftermarket: With increasing vehicle parc in the country, the aftermarket in 2014-15 grew by 12 pc to Rs 39,875 crore from Rs 35,603 crore in the previous fiscal.

• Capacity Addition: For the fiscal 2014-15 an estimated capital investment of around USD 0.3 - 0.4 billion (Rs 1,980 – Rs 2,767 crore) was witnessed in the auto component sector. Due to moderation in vehicle sales and depressed market sentiments, the investment in 2014-15 declined compared to the previous year. Capex in 2013-14 stood at around USD 0.5 -0.7 billion (Rs 3,200 – Rs 4,400 crore).

Summary of Findings:

                                                                                                            Figures in INR’ 00 Crs

Figures in USD Billion

Note:

Turnover data represents the entire supplies from the auto component industry to the on-road and off-road vehicle manufacturers and the aftermarket in India as well as overseas from ACMA member and non-member companies. This also includes component suppliers captive to the OEMs and the unorganized & smaller players

Source: ACMA