ThinkStock PhotosIn the first nine months of the year, exports and imports registered by the auto component industry remained well-balanced at $15.1 billion.

India’s auto components industry is expected to grow in double-digits in the upcoming financial year on back of demand from both local and overseas markets despite fears of recession in major markets of US and Europe,

Industry body Automotive Component Manufacturers Association of India (ACMA) estimates total turnover in the industry to increase 10-15% in FY24. The auto components industry grew by 23% to report a turnover of $ 56.5 billion in FY22. The industry expects to close the ongoing fiscal with a 15% growth in revenue.

In fact, with markets in the United States and Europe transitioning to electric vehicles, manufacturing components for internal combustion engine vehicles is likely to gain further scale in India, said Sunjay Kapur, President, ACMA.

Kapur informed, “Anything that’s happening in the ICE space, a lot of it is moving to India because a lot of tier one suppliers have discontinued investing in the ICE design and development for OEMs because of the roadmap of going electric.” A lot of the traditional components that are being manufactured, also have the option to move to India, as they discontinue manufacturing in the Western world.

In the first nine months of the year, exports and imports registered by the auto component industry remained well-balanced at $15.1 billion. Vinnie Mehta, Director General, ACMA, said, “While imports have increased on account of regulatory changes in the short-term, there has not been much impact on exports so far because of the recessionary trends being seen in the US and Europe. From what we’re hearing, the January numbers have been good and strong, and therefore, we hope and foresee that it will continue.”

Kapur added the domestic industry is looking very positive in terms of growth and “whatever we lack in exports, we will see that covered by the domestic industry.”On a conservative approach, (we) will surely grow in the range of 10-15% in FY24”, he said.