The auto component industry is expected to maintain double-digit sales growth in the current fiscal after posting new sales highs in FY2022, with demand expected to remain strong. According to Automotive Component Manufacturers Association (ACMA) data, the industry reported sales of Rs 4.2 billion in the last fiscal, up 23% from 2020-21, with passenger car and commercial vehicle production growing by 20% and 30% respectively. Supply chain disruptions were reduced respectively. Last fiscal, the domestic market entered the original equipment manufacturer (OEM) auto parts sales at Rs 341 crore, up 22% from fiscal 2021.

Similarly, annual exports of auto components in 2021-22 increased by 43% to Rs 141% crore ($19,202-211 million) year at KRW 980 million ($13.3 billion).

Asked if the industry could achieve double-digit growth in the current fiscal, ACMA Sunjay Chairman Kapur told PTI: "If the growth trend continues, there is no reason to believe otherwise."

"Everything we are seeing is pointing in the right direction. Demand is good and manufacturing looks strong. Unless we can't control a pandemic, a blockade or a global recession, we're all pointing in the right direction," he added. It is. Industry sales have leveled off before the pandemic and the next phase of growth is expected to come through the revival of new platforms, two-wheelers and commercial vehicles.

He added, "With a large number of new car launches, holiday car sales are expected to grow."

Kapoor said, "With the increase in sales of two and three-wheeler electric vehicles, the component industry is also changing. We are hopeful that the market dynamism will continue this year and FY22-23 will show health."

He pointed out that the automotive industry is increasingly focusing on deep localization and the government's announcement of the Production Linked Incentive (PLI) The scheme will boost the automotive value chain and help India develop as an attractive alternative to high-end auto components. I did.

He added, "Weak sales of two-wheelers, rising insurance costs, high inflation, high fuel costs and high logistics costs are some of the concerns of the industry that need urgent attention from the government."

Kapoor pointed out that the global automobile industry is transitioning to electric vehicles, which offers huge growth opportunities for domestic component manufacturers.

Electronic components supplied to OEMs in the last fiscal accounted for only 1% (Rs 352) crore) of the total supply in the domestic market.

Kapoor also emphasized that this cycle of capital expenditure (capex) has been restarted, which will help in new hiring in the sector.

ACMA Director General Vinnie Mehta, detailing the industry's performance in FY2022, said that all sectors, including OEMs, have seen significant growth Supply, exports and aftermarket.

Kapoor said, "Despite the severe disruption to the automotive value chain over the past two years, automotive sales, particularly in the passenger car, commercial vehicle and tractor markets, appear to have reached pre-popularity levels."

Supply-side issues such as semiconductor supply, raw material prices, and container supply have eased recently, he added.

Mr. Kapoor said in the last financial year, "The auto component industry has grown significantly in FY 2021-22 due to increase in value of regulatory compliance, rapid recovery in external markets including OEMs as well as attractiveness of the domestic market including the aftermarket." 2020-21 imports grew by 33% Rs billion to Rs 1.36 billion from 10.2 years.

ACMA represents more than 850 manufacturers in the organized industry and represents more than 90% of the sales in the auto component industry.