According to the findings of the Automotive Component Manufacturers Association of India (ACMA), the auto component aftermarket grew by 5 percent due to the increasing sales of used vehicles and the formalization of the repair and maintenance market. Aftermarket was Rs 45,158 crore (USD 5.5 billion) in the first half (H1) of FY 2024, rising to Rs 47,416 crore (USD 5.7 billion) in a year, an increase of 5 percent.
ACMA said, "The growth of the auto component industry over the last 10 years has been driven by strong domestic vehicle sales, strong aftermarket, and rising exports. Aftermarket refers to the secondary market that deals with parts, accessories, and services related to vehicles after they have been sold by the Original Equipment Manufacturer (OEM).
According to the industry body representing manufacturers in the Indian auto component industry, supply of auto components to OEMs increased by 11.2 per cent to Rs 2.83 lakh crore in the first half of FY25. The ACMA report stated that the US has emerged as the leading destination for exports, while China is the major source of imports for Indian automobile players. The share of Indian exports to the US is 28 per cent, followed by Germany (8 per cent), Turkey (5 per cent), Brazil (4 per cent) and countries like the UK, Italy, Bangladesh, Thailand, Mexico and the UAE at 3 per cent.
China accounts for 28 per cent of India's imports, followed by Germany, Japan, South Korea, the US, Thailand, Singapore, Italy, the UK and Indonesia. Exports grew by 7 per cent in the first half of FY25, while imports grew by 4 per cent; There was a trade surplus of US$ 150 million. The conclusion added that customers have started moving towards larger and more powerful vehicles across segments, indicating a change in preference. In the passenger vehicle (PV) category, UV (utility vehicles) grew by 13 per cent, with UV1 models (length 4000 to 4400 mm, price less than Rs 20 lakh) seeing a growth of 25 per cent.
Sales of motorcycles with engine capacities between 350cc and 500cc increased by almost 74 percent. Total EV sales increased by 22 percent in H1 FY25 over the previous year, with electric two-wheelers (e2W) up 26 percent, but electric passenger vehicle (e-PV) sales declined by 19 percent.
The industry witnessed a 7 per cent growth in exports, which contributed to a trade surplus of USD 150 million. The auto component sector continued to deliver high value-added products. These increase percentages are based on rupee value, and the cost of Li-ion batteries is excluded from the component consumption calculation for electric vehicles.
[Agency]