The Indian auto component sector is on a solid growth trajectory, with expectations of strong performance in FY25, bolstered by favorable macro-economic conditions, supportive government policies, and a projected GDP growth of over 7 percent. The industry’s turnover reached a record $74.1 billion in FY24, reflecting robust production, a thriving aftermarket, and significant export growth.

The Automotive Component Manufacturers Association of India (ACMA) reports that the sector has achieved substantial growth, with a 9.8 percent increase in FY24 compared to the previous year. This performance is attributed to higher vehicle production and enhanced value addition from the component sector, which has returned to pre-pandemic levels in most segments.

ACMA Director General Vinnie Mehta highlighted that domestic supply to original equipment manufacturers (OEMs) grew by 8.9 percent, totaling Rs 5.18 lakh crore. Additionally, the auto component aftermarket expanded by 10 percent, reaching $11.3 billion. Notably, the supply to the electric vehicle (EV) sector now constitutes 6 percent of the total component production in India.

Exports of auto components increased by 5.5 percent to $21.2 billion, while imports grew marginally to $20.9 billion, resulting in a trade surplus. The sector has managed to grow exports despite geopolitical challenges and rising logistics costs. The increase in imports has been relatively modest, underscoring the industry's focus on localization and domestic production capabilities, according to Shradha Suri Marwah, ACMA President and CMD of Subros.