New Delhi

The Indian auto component industry is poised for strong performance in FY25, driven by favorable macroeconomic indicators, supportive government policies, and a projected 7% GDP growth. The sector achieved a record turnover of $74.1 billion in FY24, fueled by steady production, a strong aftermarket, and rising exports.

According to the Automotive Component Manufacturers Association of India (ACMA), the increase in vehicle production and higher value addition in the sector contributed to this growth. The industry saw a 9.8% increase in FY24, returning to pre-pandemic performance levels in most segments. Exports remained steady at $21.2 billion, while imports rose to $20.9 billion, resulting in a trade surplus.

The auto component aftermarket grew by 10% to $11.3 billion, and supply to original equipment manufacturers (OEMs) increased by 8.9% to ₹5.18 lakh crore. Additionally, components for the EV manufacturing sector comprised 6% of total production.

Despite geopolitical challenges and higher logistics costs, exports grew, and the industry’s focus on localization has contributed to a positive trade balance, as noted by Shradha Suri Marwah, ACMA President.