Indian Auto Component industry turnover at Rs. 2.92 lakh crore

The turnover of the Indian auto component industry stood at Rs. 2.92 lakh crore (USD 43.5 billion) for the period April 2016 to March 2017, registering a growth of 14.3 per cent over the previous year and a CAGR of 7 percent over the last six years.

The findings of its Industry Performance Review for the fiscal 2016-2017 was announced by the Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s Auto Component manufacturing industry. This data represents the entire supply 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. The data also includes component supplies captive to the OEMs.

Key findings of the ACMA Industry Performance Review 2016-17:

• Exports: Exports of auto components grew by 3.1 per cent to Rs 73,128 crore (USD 10.90 billion) from Rs 70,916 crore (USD 10.81 billion) in 2015-16, registering a CAGR of 11 percent over a period of six years. Europe accounted for 35 per cent of exports followed by Asia and North America, with 27 per cent and 26 per cent respectively.

Exports to Asia increased by 4.6 percent followed by Europe with 2.6 percent whereas, exports to North America decreased by 3.8 percent as exporters catered to regions with rising export demand.

The key export items included engine parts, transmission parts, steering parts, chassis, bumpers, rubber products etc.

• Imports: Imports of auto components decreased by 0.1 per cent from Rs.90, 662 crore (USD 13.82 billion) in 2016-2017 to Rs.90,571 crore (USD 13.50 billion) in 2016-2017. The imports from Asia increased by 2.4 percent but decreased from North America and Europe by 14.6 percent and 7.3 percent respectively.

Technological collaboration of Indian players with global majors, OEMs’ focus on localization to improve cost competitiveness are some of the factors for reducing imports trend.

• Aftermarket: With increasing vehicle parc in the country, the aftermarket in 2016-17 grew by 25.6 percent to 56,096 (USD 8.4 billion) crore from Rs.44,660 (USD 6.8 billion) in the previous fiscal.