ACMA achieves its highest-ever turnover of Rs. 4.2 lakh crore in fiscal year 2021-22

By OEM Update Editorial August 25, 2022 2:09 pm IST

• Sales to OEMs grows 22% on back of recovery in the market
• Exports grow by 43% and imports by 33% clocking trade-surplus for the first time
• Auto component Aftermarket grows 15% to Rs.74,203 crore (USD 10 billion)
• Industry optimistic as economy revives and vehicle demand exhibits stability.

Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s Auto Component manufacturing industry announced the findings of its Industry Performance Review for the fiscal year 2021-22. The turnover of the automotive component industry stood at Rs. 4.20 lakh crore (USD56.5 billion) for the period April 2021 to March 2022, registering a growth of 23 percent over the previous year.

Commenting on the performance of the auto component industry, Vinnie Mehta, Director General, ACMA said, “Despite the supply-side issues, as vehicle sales and exports gradually gained traction, month-on-month, the auto component industry demonstrated a remarkable performance in FY 2021-22. Significant growth was witnessed across all segments including supply to OEMs, Exports as also the Aftermarket. In this backdrop the component industry sized-up to Rs.4.20 lakh crore (USD 56.5 billion) registering 23 percent growth, thus outpacing its highest ever turnover of Rs.3.95 lakh crore in FY18-19.Exports grew by 43 per cent to Rs.1.41 lakh crore (USD 19.0 billion) while imports grew by 33 percent to Rs.1.36 lakh crore (USD 18.3 billion) leading to trade surplus of USD 700 million. The Aftermarket, estimated at Rs. 74,203 crore also witnessed a steady growth of 15 percent. Component sales to OEMs in the domestic market grew by 22 per cent to Rs.3.41 lakh crore.”

Sharing his insights on the performance of the industry, Sunjay Kapur, President, ACMA & Chairman, Sona Comstar said, “Whilst the automotive value-chain faced significant disruptions over the last two years in wake of the pandemic, vehicle sales, especially in the PV, CV and tractor segments now seem to have reached the pre-pandemic levels. Of late, there has been some moderation in the supply-side issues of availability of semiconductors, input raw-material costs and availability of containers. Increased value- addition to meet regulatory compliance, fast recovery in external markets and traction in the domestic market, both OEMs and aftermarket have contributed to the remarkable growth of the auto components sector in FY 2021-22.”

Elaborating on the mood of the industry and outlook for the near future, Kapur mentioned, “Going forward, with a slew of new launches, vehicle sales are expected to gain traction during the festive season. Further, increased focus by the auto industry on deep-localisation and the announcements of the PLI schemes by the Government on Advanced Chemistry Cell (ACC) Batteries and Auto & Auto Components will facilitate the creation of a state-of-the-art automotive value chain and aid in developing India into an attractive alternative source of high-end auto components. The component industry is also transforming itself as sales of two-wheeler and three-wheeler EVs gain traction. I am hopeful that the buoyancy in the market will continue through the year and that FY22-23 will witness a healthy performance.” 

“Poor offtake of two-wheelers, increase in cost of insurance, high inflation, excessive fuel cost and extreme logistics costs are some of the issues of concern to the industry and do need urgent Government attention”, added Kapur.