India’s auto component industry recorded a $300 million trade surplus in FY24, with exports rising by 5.5% to $21.2 billion, according to the Automotive Component Manufacturers Association of India (ACMA). Imports grew by 3% to $20.9 billion. In FY23, the industry had a $200 million trade deficit.
Shradha Suri Marwah, President of ACMA, said that despite global challenges and higher logistics costs, auto component exports grew while imports increased less, leading to a trade surplus. The industry’s turnover increased by 9.8% to ₹6.14 lakh crore, supported by steady vehicle production, a strong aftermarket, and export growth.
Regionally, North America accounted for 32% of exports, growing by 4.5%, Europe accounted for 33%, and Asia for 24%. Exports to Europe grew by 12% to $6.89 billion, North America by 4% to $6.79 billion, while exports to Asia remained flat. Key export items included drive transmission & steering, engine components, body & chassis, and suspension & braking systems.
The USA was the largest export market, making up 27% of exports, followed by Germany at 8% and Turkey at 5%. China was the main source of imports, accounting for 29% of total imports, followed by Germany at 11% and South Korea at 9%. Asia accounted for 66% of imports, Europe 26%, and North America 8%. Imports from Asia grew by 3% to $13.73 billion, from Europe by 4% to $5.40 billion, while imports from North America remained flat. Key import items included engine components, body & chassis, suspension & braking, and drive transmission & steering.
Looking ahead, ACMA noted that factors such as high GDP growth, domestic vehicle demand, infrastructure development, stable international demand, focus on clean technology, and new mobility entrants would benefit the industry. However, challenges include geopolitical issues, rising freight costs, and high GST rates on auto components.
