Auto parts companies log record sales of Rs 5.6 lakh crore in FY23

CHENNAI: The auto industry is on a roll. The automotive component industry has hit an all-time high turnover of nearly $70 billion (Rs 5.6 lakh crore) FY22-23, registering a growth of nearly 33% year-on-year. According to latest data from industry apex body Automotive Component Manufacturers Association of India (ACMA), this has outpaced its former peak performance of Rs 4.2 lakh crore turnover in FY21-22.

Vinnie Mehta, director general, ACMA, said, “On the back of significant vehicle sales in the country, a robust aftermarket and steady exports, the auto component industry demonstrated its best ever performance in FY23. Exports grew 5.2% to Rs 1.61 lakh crore ($20.1 billion) while imports grew by nearly 11% to Rs 1.63 lakh crore ($20.3 billion).” The aftermarket, estimated at Rs 85,333 crore, also witnessed a steady growth of 15% while component sales to vehicle makers in the domestic market grew by 39.5% to Rs 4.76 lakh crore.

Sunjay Kapur, president, ACMA & chairman, Sona Comstar added, “Apart from growth in vehicle sales, significant higher value addition from the component sector has led to its performance in FY23. There has been steady growth in exports despite recessionary trends in Europe and the US which are key export destinations for the auto components industry. Strong rebound in vehicle sales in the domestic market led to a sharper rise in imports that has translated into a trade deficit this year.”
The rebound in the domestic passenger vehicle market and significant mitigation in the supply-side issues of availability of semiconductors, input raw-material costs and logistics, means that “the vehicle industry is expected to continue to perform well in FY24, which augurs well for the auto components sector,” he added. In exports, America accounted for 32% of exports and saw a growth of 8%. Europe accounting for 31% and Asia for 26% grew 3% and 4% respectively.