RESILIENT GROWTH AMIDST GLOBAL CHALLENGES

The ACMA Industry performance review paints a picture of resilience amidst a challenging global economic environment, writes Ashish Bhatia.

- Ashish Bhatia

The Automotive Component Manufacturers Association of India (ACMA), representing the Indian auto component manufacturing industry, recently published its ‘Industry Performance Review’ for the fiscal year 2023-24. The findings underscore a notable year of growth for the sector, with a turnover of Rs. 6.14 lakh crore (USD 74.1 billion), marking a 9.8 per cent increase over the previous year. This growth is particularly significant as it demonstrates the resilience and dynamism of the auto component industry amidst a challenging global economic environment. With this context, Vinnie Mehta, Director General, ACMA shared his perspective. He stated, “On the back of steady vehicles’ production in the country, a robust aftermarket and growth in exports, the auto component industry outpaced the turnover of Rs. 5.59 lakh crore in the previous fiscal.”

He further informed that the component supply to OEMs in the domestic market grew by 8.9 per cent to Rs. 5.18 lakh crore, with supply to the EV manufacturing industry accounting for six per cent of the total component turnover in the country. Exports grew by 5.5 per cent to USD 21.2 billion while imports grew by three per cent to USD 20.9 billion, thus resulting in a trade surplus of USD 300 million. The aftermarket, estimated at Rs. 93,886 crore also witnessed a growth of 10 per cent.