+
 Indian auto component industry likely to grow 8-10% in FY23
ROADS & HIGHWAYS

Indian auto component industry likely to grow 8-10% in FY23

According to rating agency Icra, the Indian auto component industry might have 8% to 10% growth in Financial Year (FY) 2023, due to the easing of supply-chain issues along with commodity inflation in the next half of the year.

The revenue growth of the industry for 2021-22 is 13-15%, which is driven by replacement, domestic original equipment manufacturer (OEM), export volumes, and pass-through of commodity prices. However the healthy volume growth will come on a low base of FY21.

Icra Limited Assistant VP and Sector Head, Corporate Ratings, Vinutaa S told the media that the demand for auto components stems from domestic OEMs, replacement, and exports. Domestic OEM demand remains a mixed bag in various segments of FY22 having a slowdown in two-wheelers and the semiconductor shortage has been dragging down overall production volumes.

Exports remain a bright spot in the country’s auto component story, partially aided by the "China+1 strategy". Despite the supply chain issues.

Vinutaa added that ICRA believes that growth in FY22 exports could be even better if not for the semiconductor shortage. Auto ancillaries continue to have a healthy export order book for the next couple of months, the geopolitical and supply-chain issues impact on actual offtake remains monitorable.

For FY23 the revenues might expand by 8-10% due to the support of easing of commodity inflation and supply-chain issues in H2 FY23. In the long run, premiumisation of vehicles, as well as focus on localisation, would translate to healthy growth for auto-component suppliers.

Image Source

Also read: Auto PLI attracts investment of Rs 74,850 cr for five years

According to rating agency Icra, the Indian auto component industry might have 8% to 10% growth in Financial Year (FY) 2023, due to the easing of supply-chain issues along with commodity inflation in the next half of the year. The revenue growth of the industry for 2021-22 is 13-15%, which is driven by replacement, domestic original equipment manufacturer (OEM), export volumes, and pass-through of commodity prices. However the healthy volume growth will come on a low base of FY21. Icra Limited Assistant VP and Sector Head, Corporate Ratings, Vinutaa S told the media that the demand for auto components stems from domestic OEMs, replacement, and exports. Domestic OEM demand remains a mixed bag in various segments of FY22 having a slowdown in two-wheelers and the semiconductor shortage has been dragging down overall production volumes. Exports remain a bright spot in the country’s auto component story, partially aided by the China+1 strategy. Despite the supply chain issues. Vinutaa added that ICRA believes that growth in FY22 exports could be even better if not for the semiconductor shortage. Auto ancillaries continue to have a healthy export order book for the next couple of months, the geopolitical and supply-chain issues impact on actual offtake remains monitorable. For FY23 the revenues might expand by 8-10% due to the support of easing of commodity inflation and supply-chain issues in H2 FY23. In the long run, premiumisation of vehicles, as well as focus on localisation, would translate to healthy growth for auto-component suppliers. Image Source Also read: Auto PLI attracts investment of Rs 74,850 cr for five years

Next Story
Infrastructure Urban

India to Invest Rs 600 Billion to Upgrade 1,000 ITIs

As part of its drive to modernise vocational training, the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with Gujarat’s Labour and Employment Department, held a State-Level Workshop at the NAMTECH Campus within IIT-Gandhinagar to discuss the National Scheme for ITI Upgradation.The consultation brought together key stakeholders from industry and the training ecosystem to align expectations and support implementation of the scheme, which aims to transform 1,000 Industrial Training Institutes (ITIs) across India using a hub-and-spoke model. The total outlay stands ..

Next Story
Infrastructure Urban

India Unveils Rs 600 Billion Maritime Finance Push

The Ministry of Ports, Shipping & Waterways (MoPSW) hosted the Maritime Financing Summit 2025 in New Delhi, bringing together over 250 stakeholders including policymakers, industry leaders, global investors, and financial institutions. The summit, held under the ambit of Maritime Amrit Kaal Vision (MAKV) 2047, focused on transforming India into a leading maritime power with strengthened financial, infrastructural, and technological capabilities.Union Minister Sarbananda Sonowal emphasised India's strategic progress, noting that average port turnaround times have dropped from four days to u..

Next Story
Infrastructure Urban

Govt Allocates Rs 500 Million To Boost Community Radio

The Central Government, through its ‘Supporting Community Radio Movement in India’ scheme, has allocated Rs 500 million to strengthen the community radio ecosystem across the country. The initiative aims to assist both newly established and long-operational Community Radio Stations (CRSs), ensuring their relevance to local educational, social, cultural, and developmental needs.According to the policy published by the Ministry of Information and Broadcasting, CRSs may be set up by not-for-profit organisations with at least three years of demonstrated community service. These stations are ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?