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The domestic auto component industry expects to log in double-digit sales growth in the current fiscal after having reported its highest-ever turnover in 2022-23, as demand is expected to remain robust. As per the Automotive Component Manufacturers Association (ACMA), the sector reported a turnover of Rs 5.6 lakh crore last fiscal, registering a growth of 33 per cent over Rs 4.2 lakh crore in 2021-22.

In 2022-23, exports grew by 5 per cent to Rs 1.61 lakh crore while imports grew by 11 per cent to Rs. 1.63 lakh crore, it added.

The aftermarket, estimated at Rs 85,333 crore also witnessed a steady growth of 15 per cent while component sales to OEMs in the domestic market grew by 39.5 per cent to Rs 4.76 lakh crore, ACMA said.

“With significant mitigation in the supply-side issues of availability of semiconductors, input raw-material costs and logistics, the vehicle industry is expected to continue to perform well in FY24, which augurs well for the auto components sector,” ACMA President Sunjay Kapur noted.

Whilst the automotive value chain faced significant disruptions in the wake of the pandemic, vehicle sales, especially in the PV, CV and tractor segments have now reached pre-pandemic levels. Even the two-wheeler industry has recovered well, he added.

When asked about the growth expected for the industry in the current fiscal, Kapur said, “It should be double-digit.”

ACMA Director General Vinnie Mehta said the industry is looking to enhance exports while reducing imports, especially from China which accounts for around 30 per cent of the total imports.

He noted that from a peak trade deficit of USD 2.5 billion a couple of years back, the industry has moved to a better position with a trade deficit of USD 200 million in terms of imports.

“We are continuously working along with other industry bodies like SIAM to enhance exports and reduce imports,” Mehta said.

ACMA said auto component sales to OEMs, in the domestic market, grew by 39.5 per cent to Rs 4.76 lakh crore as compared with the previous year.

“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,” Mehta said.

Commenting further, Kapur noted that there has been a 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 also led to a sharper rise in imports that has translated into trade deficit this year,” he added.

The ACMA represents over 850 manufacturers who constitute more than 90 per cent of the auto component industry’s turnover in the organised sector.