Automotive Component Manufacturers Association of India (ACMA) on Thursday said the sector is expected to close the current financial year (FY) with a double digit growth, especially with new launches and high valued vehicles.

The industry body said that the turnover during the first half (H1) of the FY2024-25 stood at ₹3.32 lakh crore ($39.6 billion), a growth of 11.3 per cent year-on-year (y-o-y) over the April-September period last year.

However, the imports from China and other Asian countries also continued to grow and accounted for 65 per cent of imports followed by Europe and North America, with 27 per cent and seven per cent respectively. Imports from Asia grew by 5.5 per cent and from Europe by 3.2 per cent y-o-y, ACMA said. But, they declined by 8.3 per cent y-o-y from North America.

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In total, imports of auto components grew by four per cent y-o-y from ₹87,425 crore ($10.6 billion) in H1 2023-24 to ₹92,050 crore ($11.0 billion) in H1 2024-25.

However, Shradha Suri Marwah, President, ACMA, said that the rate of growth of exports is higher than the rate of growth of imports, which means this gap is only going to become wider.

“It was the other way around a couple of years ago. If you look at data 10 years ago and now, there was hardly any export and everything was imported. Actually, the whole thing has changed. So these things will happen overtime and there are certain components which will take time (to domestically manufacture) because what you need is scale, huge investments and those kind of technologies,” she said.

She said that by 2030, the industry would see a completely different picture.

ACMA said the exports of auto components grew by seven per cent y-o-y to ₹93,342 crore ($11.1 billion) in H1 2024-25 from ₹85,870 crore ($10.4 billion) in H1 2023-24.

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North America accounting for 31 per cent of exports saw an increase of 8.3 per cent; while Europe also accounted for 31 per cent. Asia accounting for 22 per cent witnessed 10 per cent growth, it added.

The industry body in its half yearly review said that auto component supplies to original equipment manufacturers (OEMs), in the domestic market stood at ₹2.83 lakh crore ($33.8 billion) that grew by 11.2 per cent y-o-y compared to the first-half of the previous year.

Consumption of increased value-added components and shift in market preference towards larger and more-powerful vehicles continued to contribute to the increased turnover of the auto-components sector, it said.

In the aftermarket, the industry witnessed a growth of five per cent y-o-y to ₹47,416 crore ($5.7 billion) from ₹45,158 crore ($5.5 billion) in H1 2023-24. With increase in e-commerce, the aftermarket is witnessing enhanced penetration especially in the hinterland and a gradual evolution into organised sector, ACMA added.

“Auto component supplies to all segments of the industry — to OEMs, exports as also the aftermarket — remained steadfast. The industry remains healthy and with more government investments coming in, we believe at this juncture, we are cautiously optimistic,” Vinnie Mehta, Director General, ACMA, said.