Auto component industry to see rise in revenue, report

28 Jul 2022 CW Team

According to Crisil, the auto component business will generate 9-11 per cent of its income from EV (Electric Vehicle) parts by 2027 as electrification increases. This increase will occur even while the availability of parts for conventional internal combustion engine-driven vehicles increases, according to the report.

EV components contributed only 1 per cent of total revenue to the sector in the previous fiscal year.

Revenue from electric vehicle components is expected to expand at a compound annual growth rate of roughly 76% to Rs 725 billion in fiscal 2027, up from Rs 43 billion last fiscal.

It forecasts that up to 60 per cent of this revenue will come from the battery segment, 15 per cent from drivetrains and 15 per cent from electronics, with 90 per cent of EV component supplies likely to be for two-wheelers and PV (Passenger Vehicle) segments.

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