Parul
The auto component industry expects to maintain double-digit sales growth in the current fiscal after having reported its highest-ever turnover in FY22, with demand expected to remain robust. As per the Automotive Component Manufacturers Association (ACMA), the sector reported a turnover of Rs 4.2 lakh crore last fiscal, a growth of 23 per cent over 2020-21, as passenger and commercial vehicle production increased by 20 per cent and 30 per cent respectively due to increased demand and fewer supply chain disruptions.
Auto component sales to original equipment manufacturers (OEMs) in the domestic market stood at Rs 3.41 lakh crore last fiscal, up 22 per cent as compared to FY21.
Similarly, exports of auto components witnessed a growth of 43 per cent to Rs 1.41 lakh crore (USD 19.0 billion) in 2021-22, as against Rs 0.98 lakh crore (USD 13.3 billion) in 2020-21.
“If the growth trend continues, we have no reason to believe it won’t,” ACMA President Sunjay Kapur told PTI when asked if the sector could see double-digit growth in the current fiscal as well.
“Everything we see is pointing in the right direction. Demand is good, manufacturing is looking strong. Unless something happens that we are not in control of, like a pandemic, lockouts or a global recession, it is in the right direction,” he added.
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The sector has come to the pre-pandemic levels in terms of volumes and the next phase of growth is expected to come from newer platforms, revival of two-wheeler and commercial vehicle segments, Kapur said.
