Indian Auto Component Market Taps the Mark Of $43.5 Billion in 2017 Fiscal Year

Posted on: Sep-2017 | By: 9 Dimen | Automotive

ACMA, the component industry body, while declaring its annual performance figures, stated that there is a significant growth in the Indian automotive component market. The total revenue for the market remained at Rs 292,184 Crore, which is the two-fold growth of 14.3%.

As per the Director General of ACMA, Vinnie Mehta, demand is expected to boost in the coming future across various sub segment in the sector, specifically the 4-wheeler sector. The growth of the component industry is geared up to augment by 10–12% in the coming 2–3 Years.

The collective return is consequential of component delivery to the exports, aftermarkets, and OEs. In terms of OE sector, supplies to the personal vehicle sector are the key contributor, holding the share of 49%, followed by 2-wheeler industry with 22%, while LCVs at 8%, and M&HCVs contributing 11% respectively.
The trade from exports that closed at Rs 73,128 Crore also witnessed a stimulating growth trend by 3.1% due to energetic and considerable domestic market, bustling with high demand.

Coming on to the top leading regions in terms of exports, Europe with its 36% contribution leads in The global market, followed by North America with 26%, Africa with 6%, and at the end Latin America with 4%. Majority of the products that were exported include transmission parts, steering parts, bumpers, rubber products, and engine parts. In terms of revenue source, the U.S. turns out to be e leading source of revenue generator from exports for the auto component market. The U.S. contributes with a huge number of 22%, followed by Germany with 7%, Turkey with 6.2%, the U.K with 5.1% and Italy with 4.1%.

Coming on to the imports section, it witnessed a marginal drop of 0.1% and closed at Rs 90,571 Crore. While, on the other hand, Asia-based imports rose by 2.4%, whereas in regions such as North America and Europe, it slipped by 14.6% and 7.3% respectively. The fall in European import figures is the outcome of the poor performance of European cars in the domestic market.

The aftermarket grew appreciable by 25.6% and closed at Rs 56,096 Crore. Thus owing to implementation of various aims projected by Indian government and market player, the auto component market is expected to spur significantly.