NEW DELHI: India’s auto component industry grew by 14.3% to reach sales of Rs 2.92 billion in the last fiscal on the back of strong growth in aftermarket sales.

Latest data from the Automotive Component Manufacturers Association of India (ACMA) shows that the aftermarket grew by 25.6% in the last fiscal, with exports increasing to Rs. 5609.660 crore from Rs. 4,466,5609.660 crore in the previous fiscal.

Exports in 2016-17 stood at 731, 2800 compared to 709, 1600 in the previous year, Rs. billion Rs. billion Rs. billion up 3.1%. Imports declined by 0.1% to Rs 90,662 crore in the previous fiscal as compared to Rs 90,571 crore in 2015-16.

Rattan Kapur, Chairman, ACMA, said: “Automobile production remained unchanged despite the demonetization issue and uncertainty over the implementation of Goods and Services Tax (GST). Against this backdrop, the performance of the auto component sector has been disappointing.

He said the aftermarket is the “silver lining” to the 25.6% growth.

Commenting on the outlook, Kapoor said, “We see a looming technological change in the automotive industry that will require the parts industry to invest in R&D, create intellectual property, and acquire and develop relevant technologies at a faster pace.” “.

Echoing similar sentiments, ACMA director general Vinnie Mehta said the industry is currently preparing for an upgrade from BS-IV to BS-IV for the 2020 service year.

“Rolling out a generation of technology in just three years requires a significant investment not only in technology acquisition and use, but also in labor skills training.”

ACMA said passenger cars accounted for 49%, two-wheelers for 22%, medium and heavy commercial vehicles for 11%, light commercial vehicles for 8% and tractors for 6%. Excavators accounted for 2% and loaders for 2%.