New Delhi, Jul 26, 2024, IANS

New Delhi, July 26 (IANS) With strong macro-economic indicators, conducive government policies and over 7 per cent growth projected for the Indian GDP, the auto component industry will continue to perform well in FY25, according to the industry. Riding on steady production, a robust aftermarket and growth in exports, turnover of the automotive component industry in India has broken all previous records, reaching $74.1 billion in FY24. Apart from an increase in vehicle production, higher value addition from the component sector has led to growth in the auto components sector, according to the Automotive Component Manufacturers Association of India (ACMA). Steady growth in the vehicle industry has resulted in the industry reaching pre-pandemic levels of performance in FY24 in most segments. The industry clocked a growth of 9.8 per cent in FY24 over the previous year, as exports, with a trade surplus, remain steady despite geopolitical challenges. According to ACMA, the auto component aftermarket grew 10 per cent to reach $11.3 billion in the last fiscal year. Vinnie Mehta, Director General, ACMA said that the component supply to original equipment manufacturers (OEMs) in the domestic market has grown by 8.9 per cent to Rs 5.18 lakh crore. Also, the supply to the EV manufacturing industry accounted for 6 per cent of the total component production in the country. Meanwhile, the exports went up by 5.5 per cent to $21.2 billion as imports grew by per cent to $20.9 billion. Auto components exports have grown despite geopolitical challenges and increases in logistics costs. That apart, growth in imports has been comparatively lesser, leading to a trade surplus, indicating thrust by the industry on front of localisation, according to Shradha Suri Marwah, President, ACMA and CMD, Subros.