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PV, CV and tractor sales now seem to have reached pre-pandemic levels: ACMA president Kapur
PV, CV and tractor sales now seem to have reached pre-pandemic levels: ACMA president Kapur
The auto components industry in the country registered its highest-ever turnover of ₹4.2 lakh crore (about $56.5 billion) in 2021-22, and expects to maintain double-digit sales growth in the current fiscal as well, driven by increased demand amid fewer supply chain disruptions.
According to the Automobile Component Manufacturers Association (ACMA), the sector’s turnover grew 23% in the last fiscal, aided by a 20% year-on-year increase in production of passenger vehicles (PVs) and 30% growth in commercial vehicle (CV) output.
“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,” Sunjay Kapur, president, ACMA and Chairman, Sona Comstar said.
He added that of late, there had been some moderation in supply-side issues relating to 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 OEM and aftermarket – have contributed to the remarkable growth of the auto components sector in FY22, he added.
As per ACMA, auto component sales to Original Equipment Manufacturers (OEMs) in the domestic market rose 21% to ₹3.41 lakh crore, while component exports witnessed 43% growth to ₹1.41 lakh crore.
Auto component sales to the EV segment stood at ₹3,520 crore, which is about 1% of component sales to OEMs.
Replying to a query on achieving double-digit growth this year, Mr. Kapur said, “If the uptrend continues, we have no reason to believe it will not… Demand is good, production looks strong. Until something we have no control over happens, such as a pandemic, lockouts or a global recession, it is in the right direction.”
He added that with a slew of new launches, vehicle sales were expected to gain traction during the festive season.
Imports of auto components also increased during the last fiscal by 33% to ₹1.36 lakh crore ($18.3 billion) from ₹1.02 lakh crore ($13.8 billion) in 2020-21.
“Asia accounted for 65% of imports followed by Europe and North America at 27% and 7%, respectively.”
Additionally, the industry body noted that increased movement of vehicles post-pandemic and surge in demand for used-vehicles had led to buoyancy in the aftermarket across all segments. The turnover of the aftermarket in FY22 stood at ₹74,203 crore (10.0 billion) compared with ₹64,524 crore ($8.7 billion) in the previous year.
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