ThinkStock PhotosExports grew by 8.6% to $10.1 billion evening out the trade surplus the industry had registered last fiscal.

The auto component industry is looking at clocking double-digit growth in the ongoing financial year on back of robust demand in the domestic market.

Overall, revenues from sales in the first six months of the fiscal rose 27.3% to $ 33.8 billion. While sales to OEMs (original equipment manufacturers) grew by 38% $ 28.6 billion, aftermarket sales witnessed a growth of 2% to close at $ 5.4 billion in the same period.

The strong growth in demand for automobiles in the local market, however, led to an increase in imports. Imports of auto components in the period under consideration went up by 17.2% to $10.1 billion. Asia accounted for 65% of imports followed by Europe and North America, with 26% and 8%, respectively. Imports from Asia grew by 21%, from Europe by 6% and from North America by 29% till September this fiscal.

Exports grew by 8.6% to $10.1 billion evening out the trade surplus the industry had registered last fiscal. North America accounting for 33% of exports, saw an increase of 12% while Europe and Asia, accounting for 30% and 26%, respectively also registered increase of 4% and 11%.

Sunjay Kapur, President, Automotive Component Manufacturers Association (ACMA) & Chairman, Sona Comstar said, “With vehicle sales across all segments, reaching the pre-pandemic levels and moderation in the supply-side issues such as availability of semiconductors, high input raw-material costs and non-availability of containers, the auto components sector witnessed a steady growth in both domestic and the international markets in the first-half of FY2022-23. With domestic manufacturing of vehicles and components gathering pace, imports also witnessed an uptick.”

Kapur added the industry is optimistic that the current fiscal year will witness another good performance from the auto components sector. “Further, with growth in consumption of EVs, we are witnessing fast transformation of the auto components sector to be an integral part of the EV manufacturing supply chain. The components industry is making steady investments as also acquiring technology companies”, said he.

Kapur, however, cautioned, for medium to long term outlook, the industry needs to be wary of the impending recession in Europe and the US as also the supply chain issues which are not fully resolved.