India’s Auto Component Industry Thrives, Registers 9.8% Growth in FY24

The Indian automotive component industry demonstrated robust growth in the fiscal year ending March 31, 2024, with a turnover of ₹6.14 lakh crore, marking a 9.8% increase over the previous year. This growth was fueled by a combination of factors, including steady vehicle production, a thriving aftermarket, and increased exports.

Domestically, component supply to original equipment manufacturers (OEMs) surged by 8.9% to ₹5.18 lakh crore. Notably, the burgeoning electric vehicle (EV) industry accounted for 6% of total component production, highlighting the sector’s growing importance.

On the global front, exports from the Indian auto component industry rose by 5.5% to USD 21.2 billion, while imports increased by 3% to USD 20.9 billion, resulting in a trade surplus of USD 300 million.

The aftermarket segment also contributed significantly to the industry’s growth, expanding by 10% to reach ₹93,886 crore.

These positive trends underscore the Indian auto component industry’s resilience and its ability to navigate challenges while capitalising on growth opportunities. As the domestic and global automotive landscape continues to evolve, the industry is well-positioned to play a pivotal role in India’s economic growth.

CMA President Shradha Suri Marwah said, “It is pertinent to note that apart from an increase in vehicle production, higher value addition from the component sector has led to growth in the auto components sector.”

She added that while overall merchandise exports from India witnessed degrowth in FY24, auto components exports have grown despite geopolitical challenges and an increase in logistics costs. However, the first quarter of FY25 witnessed somewhat slower offtake in vehicle sales, especially in passenger vehicles and commercial vehicles, given the high base, due to inclement weather conditions and elections.

“With strong macro-economic indicators, conducive government policies and over 7 per cent growth projected for the Indian GDP, we are hopeful that the auto components industry will continue to perform well in FY25, she added.

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