Robust Growth in Indian Auto Components Industry

The Indian auto components industry has shown a remarkable 11.3% growth in the first half of FY25, reaching a market size of $39.6 billion, as reported by the Automotive Component Manufacturers Association (ACMA).

This surge from $36.1 billion in H1 FY24 is attributed to several market trends, including a shift towards larger and more powerful vehicles. The demand for Utility Vehicles (UVs) in the Passenger Vehicle (PV) segment grew by 13%, with UV1 models experiencing a 25% increase in sales. Similarly, the two-wheeler market saw a 74% rise in sales of motorcycles with engine capacities between 350cc and 500cc.

Electric vehicles (EVs) also gained traction, with sales increasing by 22% in H1 FY25 compared to the previous year. While electric two-wheelers (e-2W) grew by 26%, electric passenger vehicles (e-PVs) saw a decline of 19%. Exports from the sector grew by 7%, resulting in a trade surplus of $150 million.

The USA, Germany, and Turkey emerged as top destinations for Indian auto component exports, while China, Germany, Japan, and Korea were the leading sources of imports. The industry's overall size stood at Rs 3.32 lakh crore ($39.6 billion) in H1 FY25, with supply to Original Equipment Manufacturers (OEMs) reaching Rs 2.83 lakh crore ($33.8 billion).

Exports in Asia alone amounted to $2.74 billion, while region-wise imports were valued at $7.16 billion. The total industry turnover stood at Rs 3.32 lakh crore ($39.6 billion) in H1 FY25, marking an 11.3% growth from H1 FY24. The supply to OEMs increased by 11.2%, and the aftermarket segment grew by 5.0%.

Exports from the industry grew by 8.7%, amounting to Rs 93,342 crore ($11.1 billion), while imports rose by 5.3%, totaling Rs 92,050 crore ($11.0 billion).