India’s Auto Component Industry Grows by 9.8% in 2023-24
ACMA President Shradha Suri Marwah Highlights Key Achievements
The turnover of India’s automotive component industry grew by 9.8% in the financial year 2023-24, reaching Rs 6.14 lakh crore (USD 74.1 billion), according to the Automotive Component Manufacturers Association of India (ACMA). This growth was driven by increased vehicle production and higher value addition from the component sector.
ACMA President Shradha Suri Marwah noted that despite global challenges and increased logistics costs, auto component exports grew by 5.5%, reaching USD 21.2 billion. North America and Europe were the major markets, accounting for 32% and 33% of exports, respectively.
Marwah also mentioned that the industry has returned to pre-pandemic performance levels in most segments, although the first quarter of FY25 saw slower vehicle sales due to inclement weather and elections. She expressed optimism for continued growth in 2024-25, supported by strong macro-economic indicators and favorable government policies.
Key Findings from ACMA Annual Industry Performance Review
| Category | 2023-24 | 2022-23 |
|---|---|---|
| Domestic OEM Sales | Rs 5.18 lakh crore (USD 62.4 billion) | 8.9% growth |
| Auto Component Exports | USD 21.2 billion | 5.5% growth |
| Component Imports | USD 20.9 billion | 3.0% growth |
| Aftermarket Turnover | Rs 93,886 crore (USD 11.3 billion) | Rs 85,333 crore (USD 10.6 billion) |
The aftermarket sector also saw significant growth, driven by increased vehicle movement and a surge in demand for used vehicles. The sector is evolving with enhanced e-commerce penetration, especially in rural areas.
Doubts Revealed
Auto Component Industry -: This is the industry that makes parts for vehicles like cars and bikes. These parts include things like engines, brakes, and lights.
9.8% Growth -: This means that the industry made 9.8% more money than it did the previous year. It’s like if you had 100 rupees last year and now you have 109.8 rupees.
2023-24 -: This refers to the financial year from April 2023 to March 2024. In India, financial years are counted from April to March.
Rs 6.14 lakh crore -: This is a very large amount of money. One lakh crore is 1,00,000 crore rupees. So, Rs 6.14 lakh crore is 6,14,000 crore rupees.
USD 74.1 billion -: This is the amount of money in US dollars. One billion is 1,000 million. So, USD 74.1 billion is 74,100 million dollars.
ACMA -: ACMA stands for Automotive Component Manufacturers Association of India. It is a group that represents companies making vehicle parts in India.
Shradha Suri Marwah -: She is the President of ACMA. A president is a leader of an organization.
Vehicle Production -: This means making more cars, bikes, and other vehicles. When more vehicles are made, more parts are needed.
Value Addition -: This means making the parts better or more useful, which makes them worth more money.
Global Challenges -: These are problems that affect the whole world, like economic issues or supply chain disruptions.
Auto Component Exports -: This means sending vehicle parts made in India to other countries to sell.
North America and Europe -: These are regions in the world. North America includes countries like the USA and Canada. Europe includes countries like Germany and France.
Aftermarket Sector -: This is the market for vehicle parts that are sold after the vehicle is made, like spare parts and accessories.
E-commerce -: This means buying and selling things online, like on websites such as Amazon or Flipkart.
