Indian auto industry grew by 9.8% in FY24; Chassis, suspension and braking were the most exported

The Automotive Component Manufacturers Association of India (ACMA) has released a report, that states that the business of India's automotive component industry has increased by 9.8 percent in FY 2023-24. Along with this, ACMA President and Subros CMD Shraddha Suri Marwah said that apart from the increase in vehicle production, high-value additions from the component sector have also seen growth in the auto component sector.

Marwah further said that the total merchandise exports from India are expected to decline in FY24. At the same time, despite geopolitical challenges and increased logistics costs, auto component exports have seen an increase. Along with this, the report states that vehicle sales have seen somewhat slower growth in the first quarter of FY25 due to bad weather conditions and elections.

According to a release, ACMA, the body representing India's auto component manufacturing industry, in its review for FY23-24 said that the turnover during the year was Rs 6.14 lakh crore (USD 74.1 billion). It is expected that the auto component industry will continue to perform well in 2024-25.

According to the ACMA report, OEM auto component sales in the Indian market stood at Rs 5.18 lakh crore, an increase of 8.9 over last year. The reason behind this is the increase in its consumption, emphasis on localization, and change in market preference towards powerful vehicles. Due to these, the export of vehicles was seen to increase by 5.5 percent in 2023-24. Of this, North America contributed 32 percent, Europe 33 percent, and Asia 24 percent.

Major export items included drive transmission and steering, engine components, body and chassis, suspension and braking systems.