New Delhi [India], December 15 : The auto component aftermarket grew by 5 per cent due to an increase in used vehicle parc and formalisation of the repair and maintenance market, according to the findings of the Automotive Component Manufacturers Association of India (ACMA).
The aftermarket in the first half (H1) of the financial year (FY) 2024 stood at Rs 45,158 crore (USD 5.5 billion) which grew to Rs 47,416 crore (USD 5.7 billion) in one year, with 5 per cent of the increase.
"Auto Component Industry growth over last 10 years driven by robust domestic vehicles sales, strong aftermarket and increasing exports," the ACMA added.
The aftermarket refers to the secondary market that deals with the parts, accessories, and services related to vehicles after they have been sold by the original equipment manufacturer (OEM).
As per the industry body that represents the manufacturers in the Indian auto component industry, the auto component supply to OEMs in H1 FY 2025 stood at Rs 2.83 lakh crore, with a rise of 11.2 per cent.
The ACMA report added that the USA has emerged as the key destination for exports while China is a key source of imports for the Indian automobile players.
The share of Indian exports to the USA stands at 28 per cent, followed by Germany (8 per cent) Turkey (5 per cent) Brazil (4 per cent), and countries such as UK, Italy, Bangladesh, Thailand, Mexico, and UAE with 3 per cent of export.
China accounts for 28 per cent of imports in India, followed by Germany, Japan, S Korea, USA, Thailand, Singapore, Italy, UK and Indonesia.
The exports, in the H1FY25, grew by 7 per cent while imports by 4 per cent; a trade surplus of USD 150 million.
The finding stated that customers have started to move towards larger and more powerful vehicles across all segments, exhibiting a shift in preference.
UVs (Utility Vehicles) in the Passenger Vehicle (PV) category grew by 13 per cent, with UV1 models (length 4000 to 4400 mm, priced under 20 Lakhs) showing a 25 per cent growth.
Sales of motorcycles with engine capacities between 350cc and 500cc increased by around 74 per cent.
Overall EV sales rose by 22 per cent in H1 FY25 compared to the previous year, with electric two-wheelers (e2W) growing 26 per cent, but electric passenger vehicle (e-PV) sales declined by 19 per cent.
The industry saw a 7 per cent growth in exports, contributing to a USD 150 million trade surplus. The auto components sector continued to deliver higher value-added products.
These growth percentages are based on Rupee values, and the cost of Li-ion batteries is excluded from component consumption calculations for EVs.
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