Auto component sector sees record turnover of Rs 4.2 trillion in FY22
Equipment

Auto component sector sees record turnover of Rs 4.2 trillion in FY22

Indian auto components industry clocked its highest-ever turnover of Rs 4.2 trillion in 2021-22, registering a growth of 23% on the back of strong performance in exports and aftermarket, industry body ACMA said. Aftermarket denotes the market for auto components that are used to replace the original auto parts when they are not functioning properly.

At a virtual press conference, Automotive Component Manufacturers’ Association of India (ACMA) stated while auto parts’ imports rose 33% in 2021-22, exports grew 43% in the same period. The auto component industry in India exported components worth Rs 1.41 trillion in 2021-22, it said, adding that auto parts worth Rs 1.36 trillion were imported in 2021-22.

Around 30 per cent of total auto components’ import is from China, giving it the number one position. Germany is the second-largest source of auto parts for India, accounting for around 11 per cent, ACMA noted.

“North America, which accounts for 32% exports, saw a 46 per cent growth. Europe, accounting for 31 per cent and Asia for 2%, respectively, grew 39% and 40%,” ACMA noted.

Key items exported in the last financial year were drive transmission and steering, engine components, body, chassis, suspension, and brakes. The turnover of auto components’ aftermarket stood at Rs 74,203 crore in 2021-22, clocking a growth rate of 15% over the previous year. The aftermarket’s turnover crossed the pre-pandemic levels in 2021-22 because of more vehicles on road, prolonged usage of vehicles, increase in demand of second-hand vehicles, increase in commodity prices, and emergence of new sales channels such as online retailers and multi-brand outlets, ACMA noted.

ACMA said shortage of chips, high raw material and logistics cost, availability of containers for transport of auto components, increasing inflation, rising fuel prices, high insurance cost, less than expected growth in two-wheeler segment and high GST rates on auto components are some of the headwinds the auto component industry is facing in the country. However, it also mentioned that the sector is also getting the benefit of multiple tailwinds such as high estimated GDP growth in 2022-23, strong demand in domestic vehicle market, surge in exports, focus on clean and new technology, states’ electric vehicles policy and the government’s production-linked incentive (PLI) scheme.

Indian auto components industry clocked its highest-ever turnover of Rs 4.2 trillion in 2021-22, registering a growth of 23% on the back of strong performance in exports and aftermarket, industry body ACMA said. Aftermarket denotes the market for auto components that are used to replace the original auto parts when they are not functioning properly. At a virtual press conference, Automotive Component Manufacturers’ Association of India (ACMA) stated while auto parts’ imports rose 33% in 2021-22, exports grew 43% in the same period. The auto component industry in India exported components worth Rs 1.41 trillion in 2021-22, it said, adding that auto parts worth Rs 1.36 trillion were imported in 2021-22. Around 30 per cent of total auto components’ import is from China, giving it the number one position. Germany is the second-largest source of auto parts for India, accounting for around 11 per cent, ACMA noted. “North America, which accounts for 32% exports, saw a 46 per cent growth. Europe, accounting for 31 per cent and Asia for 2%, respectively, grew 39% and 40%,” ACMA noted. Key items exported in the last financial year were drive transmission and steering, engine components, body, chassis, suspension, and brakes. The turnover of auto components’ aftermarket stood at Rs 74,203 crore in 2021-22, clocking a growth rate of 15% over the previous year. The aftermarket’s turnover crossed the pre-pandemic levels in 2021-22 because of more vehicles on road, prolonged usage of vehicles, increase in demand of second-hand vehicles, increase in commodity prices, and emergence of new sales channels such as online retailers and multi-brand outlets, ACMA noted. ACMA said shortage of chips, high raw material and logistics cost, availability of containers for transport of auto components, increasing inflation, rising fuel prices, high insurance cost, less than expected growth in two-wheeler segment and high GST rates on auto components are some of the headwinds the auto component industry is facing in the country. However, it also mentioned that the sector is also getting the benefit of multiple tailwinds such as high estimated GDP growth in 2022-23, strong demand in domestic vehicle market, surge in exports, focus on clean and new technology, states’ electric vehicles policy and the government’s production-linked incentive (PLI) scheme.

Next Story
Infrastructure Transport

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

Next Story
Resources

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Next Story
Real Estate

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?