The Automotive Component Manufacturers Association of India (ACMA) has projected strong double-digit growth for the auto components industry in the current financial year, driven by rising demand for high-value vehicles and new model launches. In the first half (H1) of FY2024-25, the sector recorded a turnover of ₹3.32 lakh crore ($39.6 billion), reflecting an 11.3% year-on-year (y-o-y) growth compared to the same period last year.
The Indian auto components industry witnessed a modest 4% year-on-year growth in imports during the first half of FY2024-25, rising to ₹92,050 crore ($11.0 billion) from ₹87,425 crore ($10.6 billion) in the same period of the previous fiscal year. Imports from Asia, which dominate with a 65% share, increased by 5.5%, while those from Europe, comprising 27%, saw a 3.2% rise. However, imports from North America, representing 7% of the total, experienced a decline of 8.3%.
In contrast, exports grew at a faster pace, recording a 7% increase year-on-year, climbing from ₹85,870 crore ($10.4 billion) in H1 FY2023-24 to ₹93,342 crore ($11.1 billion) in H1 FY2024-25. North America and Europe, each contributing 31% to total exports, showcased strong growth, with North America rising by 8.3% and Europe by 10%. Exports to Asian countries, which accounted for 22% of the total, also expanded at an impressive rate of 10%.
This dynamic shift reflects evolving trade trends, highlighting India’s increasing export competitiveness in the auto components sector. While imports continue to rise, the accelerated growth in exports, driven by robust demand from North America, Europe, and Asia, underscores the industry’s growing global footprint.
ACMA President Shradha Suri Marwah noted the significant shift in the trade balance, with exports now growing faster than imports. “A decade ago, exports were minimal while imports dominated. This transformation reflects the industry’s growing capabilities. However, scaling domestic production of certain components will require large investments and advanced technologies,” she said.
The Indian auto component industry demonstrated robust performance with supplies to original equipment manufacturers (OEMs) reaching ₹2.83 lakh crore ($33.8 billion) in the first half of the fiscal year, an impressive 11.2% year-on-year growth. This growth reflects increased production activity across vehicle segments and a strong demand for components driven by both domestic and global markets.
The aftermarket sector also showed steady expansion, recording a 5% year-on-year increase to ₹47,416 crore ($5.7 billion). This growth was fueled by the rising influence of e-commerce platforms, which have enhanced accessibility, and deeper penetration into rural areas, where demand for vehicle maintenance and replacement parts continues to rise. Together, these trends underscore the resilience and adaptability of the auto components industry in meeting diverse market needs.
Vinnie Mehta, Director General of ACMA, emphasized the sector’s resilience and growth across all segments, stating, “The industry is in a healthy position. With continued government support and investments, we remain cautiously optimistic about the future.”
With evolving consumer preferences for larger, more powerful vehicles and increased use of value-added components, the auto components industry is set for sustained growth. By 2030, ACMA anticipates a complete transformation in the sector, driven by technological advancements and domestic manufacturing capabilities.
