ACMA reports, auto component industry eyes $7 bn investment
ECONOMY & POLICY

ACMA reports, auto component industry eyes $7 bn investment

The Auto Component Manufacturers Association (ACMA) revealed that despite facing challenges such as geopolitical uncertainties, economic downturns in Europe and the US, and high GST rates in the immediate future, the auto component industry is set to invest approximately $7 billion over the next five years. On a positive note, ACMA cited factors like the anticipated high GDP growth for FY2024, a focus on infrastructure development, stable international demand/exports, and the entry of new players in the mobility sector.

Shradha Suri Marwah, President of ACMA and Chairman/Managing Director of Subros, expressed optimism about the current fiscal year's performance in the auto components sector, particularly after a successful festive season with significant sales across various vehicle segments. Marwah emphasised that the industry continues to invest in higher value-addition, technology upgrades, and localisation to remain relevant to both domestic and international customers.

ACMA presented the Industry Performance Review for the first half of FY2023-24, reporting a 12.6% growth in the component industry's turnover to Rs 2.98 trillion ($36.1 billion) for April-September 2023 compared to the same period last year. Marwah highlighted the recovery of vehicle sales to pre-pandemic levels, along with the resolution of supply-side issues like semiconductor availability, high raw-material costs, and container shortages.

Domestic auto component sales to original equipment manufacturers (OEMs) grew by 13.9% to Rs 2.54 trillion in H1 2023-24. Exports also saw an 8.7% increase to Rs 858.7 billion, with North America and Europe contributing significantly. Auto component imports grew by 9.5% to Rs 874.25 billion in H1 2023-24, with China being the largest contributor. The aftermarket sector experienced a 7.5% growth to Rs 451.58 billion during the same period.

The Auto Component Manufacturers Association (ACMA) revealed that despite facing challenges such as geopolitical uncertainties, economic downturns in Europe and the US, and high GST rates in the immediate future, the auto component industry is set to invest approximately $7 billion over the next five years. On a positive note, ACMA cited factors like the anticipated high GDP growth for FY2024, a focus on infrastructure development, stable international demand/exports, and the entry of new players in the mobility sector. Shradha Suri Marwah, President of ACMA and Chairman/Managing Director of Subros, expressed optimism about the current fiscal year's performance in the auto components sector, particularly after a successful festive season with significant sales across various vehicle segments. Marwah emphasised that the industry continues to invest in higher value-addition, technology upgrades, and localisation to remain relevant to both domestic and international customers. ACMA presented the Industry Performance Review for the first half of FY2023-24, reporting a 12.6% growth in the component industry's turnover to Rs 2.98 trillion ($36.1 billion) for April-September 2023 compared to the same period last year. Marwah highlighted the recovery of vehicle sales to pre-pandemic levels, along with the resolution of supply-side issues like semiconductor availability, high raw-material costs, and container shortages. Domestic auto component sales to original equipment manufacturers (OEMs) grew by 13.9% to Rs 2.54 trillion in H1 2023-24. Exports also saw an 8.7% increase to Rs 858.7 billion, with North America and Europe contributing significantly. Auto component imports grew by 9.5% to Rs 874.25 billion in H1 2023-24, with China being the largest contributor. The aftermarket sector experienced a 7.5% growth to Rs 451.58 billion during the same period.

Related Stories

Gold Stories

Next Story
Real Estate

Anshul Singhal launches Vantrock with Rs 42 billion development plan

Real estate professional Anshul Singhal has launched Vantrock Real Assets Private Limited (VRAPL), a Mumbai-headquartered platform focused initially on warehousing, industrial and logistics parks. The company plans to develop approximately 11.5 million sq ft of assets, with an estimated gross development value (GDV) of Rs 42 billion (approximately USD 434 million) on completion.The first phase will cover around 3 million sq ft across the National Capital Region (NCR), Bengaluru and Pune, with an estimated development value of Rs 11 billion (approximately USD 113 million). Construction is sched..

Next Story
Infrastructure Transport

Afcons wins CII award for biodiversity management

Afcons Infrastructure has received the Confederation of Indian Industry (CII) National Award for Environmental Best Practices 2026 in the Biodiversity Management category for its work on the Mumbai-Ahmedabad High Speed Rail Project’s C-2 package.The award was presented at a ceremony in Chennai on 9 October 2026. It was received by Mihir Mishra, Vice-President, CPE, and Sumon Paul, Assistant General Manager, HSE, along with the Afcons team.The project adopted several resource recovery and waste management practices. These included recycling concrete washout waste to recover sand, aggregates a..

Next Story
Technology

Indian businesses lead globally in planned AI investment, says Autodesk

Indian organisations are moving towards deeper integration of artificial intelligence (AI), digital technologies and sustainability into business operations, according to Autodesk’s 2026 State of Design & Make report. The fourth edition of the annual study highlights growing AI adoption, measurable outcomes from digital transformation and the role of sustainability in long-term business growth.The report found that 64 per cent of Indian organisations are approaching or have achieved their current AI goals. While 88 per cent believe AI will enhance their industry, up from 78 per cent in 2..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code