Sunday 15 / December / 2024
New Delhi: The Indian auto components industry has experienced robust growth in the first half of FY25, with a notable 11.3 per cent increase in its market size, according to Automotive Component Manufacturers Association (ACMA) report.
The industry, which was valued at USD 36.1 billion in H1 FY24, surged to USD 39.6 billion in H1 FY25. Several trends have emerged in the market, with consumers shifting towards larger and more powerful vehicles across all segments.
The demand for Utility Vehicles (UVs) in the Passenger Vehicle (PV) segment grew by 13 per cent, with UV1 models (ranging from 4000 to 4400 mm in length and priced under Rs 20 lakh) seeing a 25 per cent increase in sales.
The two-wheeler market also saw a 74 per cent increase in sales of motorcycles with engine capacities between 350cc and 500cc.
Electric vehicles (EVs) have gained significant traction, with sales rising by 22 per cent in H1 FY25 compared to the previous year. While electric two-wheelers (e-2W) grew by 26 per cent, electric passenger vehicles (e-PVs) saw a decline of 19 per cent.
Exports from the auto components sector have been strong, with a 7 per cent growth in exports and a trade surplus of USD150 million.
The USA, Germany, and Turkey emerged as the top destinations for Indian auto component exports, while China, Germany, Japan, and Korea were the leading sources of imports.
The industry's overall size stood at Rs 3.32 lakh crore (USD 39.6 billion) in H1 FY25, with supply to Original Equipment Manufacturers (OEMs) reaching Rs 2.83 lakh crore (USD 33.8 billion).
Exports in Asia alone amounted to USD 2.74 billion, while the total region-wise imports were valued at USD 7.16 billion.
In terms of overall performance, the total industry turnover stood at Rs 3.32 lakh crore (USD 39.6 billion) in H1 FY25, up from Rs 2.98 lakh crore (USD 36.1 billion) in H1 FY24, marking an 11.3 per cent growth.
The supply to Original Equipment Manufacturers (OEMs) saw an increase of 11.2 per cent, reaching Rs 2.83 lakh crore (USD 33.8 billion), compared to Rs 2.55 lakh crore (USD 30.8 billion) in the same period last year.
The aftermarket segment grew by 5.0 per cent, totaling Rs 47,416 crore (USD 5.7 billion), up from Rs 45,158 crore (USD 5.5 billion) in H1 FY24.
Exports from the industry grew by 8.7 per cent, amounting to Rs 93,342 crore (USD 11.1 billion), up from Rs 85,870 crore (USD 10.4 billion) in H1 FY24.
Imports also saw a rise of 5.3 per cent, totaling Rs 92,050 crore (USD 11.0 billion), compared to Rs 87,425 crore (USD 10.6 billion) in the previous year.
