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  1. Home
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  3. Indian Auto Component Industry grows by 14.3 percent in FY 16-17

Indian Auto Component Industry grows by 14.3 percent in FY 16-17

01 September, 2017
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Indian Auto Component Industry grows by 14.3 percent in FY 16-17; Turnover Rs. 2.92 lakh crore

  • Auto component Aftermarket scales to Rs. 56,096 crore growing 25.6 percent
  • Exports grew by 3.1 percent to Rs 73.128 crore

New Delhi; 31 August 2017: Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s Auto Component manufacturing industry, today announced the findings of its Industry Performance Review for the fiscal 2016-2017. The turnover of the auto component industry stood at Rs. 2.92 lakh crore (USD 43.5 billion) for the period April 2016 to March 2017, registering a growth of 14.3 per cent over the previous year and a CAGR of 7 percent over the last six years. This data represents the entire supply from the auto component industry (ACMA members and non-members) to the on-road and off-road vehicle manufacturers and the aftermarket in India as well as exports. The data also includes component supplies captive to the OEMs.

Commenting on the performance of the auto component industry in India, Mr. Rattan Kapur, President, ACMA said, “Despite the challenges of demonetisation and uncertainty in implementation of GST, the vehicle production remained buoyant. In this backdrop, the auto component industry as well posted an encouraging performance; the industry grew by 14.3 percent over the previous year, scaling Rs 29,2184 crore (USD 43.5 billion). Further exports, grew by 3.1 percent in FY 2016-17 to Rs. 73,128 crore (USD 10.9 billion) registering a CAGR of 11 percent over a period of six years. The Aftermarket was however a silver lining, that grew by 25.6 percent to Rs. 56,096 crore (USD 8.4 billion).

Further commenting on the future prospects of the industry Kapur added, “we believe that a technological transformation of the automotive industry is imminent, which calls upon the component industry to invest in R&D, create IP, acquire and develop relevant technologies at a much faster pace to remain relevant for future needs”.

Corroborating the thought of Mr Kapur, Mr. Vinnie Mehta, Director General, ACMA commented, “undoubtedly the auto component industry will need to prepare for transformation to e-mobility, but our hands at this juncture are also full in graduating from BS-IV to BS-VI, which by no means is a small change. Leapfrogging a generation of technology in just three years not only calls for sizeable investments for technology acquisition and absorption, but also for skilling of people”.

“Therefore, a long-term stable, technology-agnostic roadmap for the automotive industry driven by a sound regulatory framework is the need of the hour. So that the industry can invest for sustainable growth and development, in line with the aspirations of all stakeholders”, Mehta added.

Key findings of the ACMA Industry Performance Review 2016-17:

  • Exports: Exports of auto components grew by 3.1 per cent to Rs 73,128 crore (USD 10.90 billion) from Rs 70,916 crore (USD 10.81 billion) in 2015-16, registering a CAGR of 11 percent over a period of six years. Europe accounted for 35 per cent of exports followed by Asia and North America, with 27 per cent and 26 per cent respectively.
  • Exports to Asia increased by 4.6 percent followed by Europe with 2.6 percent whereas, exports to North America decreased by 3.8 percent as exporters catered to regions with rising export demand.
  • The key export items included engine parts, transmission parts, steering parts, chassis, bumpers, rubber products etc.
  • Imports: Imports of auto components decreased by 0.1 per cent from Rs.90, 662 crore (USD 13.82 billion) in 2016-2017 to Rs.90,571 crore (USD 13.50 billion) in 2016-2017. The imports from Asia increased by 2.4 percent but decreased from North America and Europe by 14.6 percent and 7.3 percent respectively.
  • The technological collaboration of Indian players with global majors, OEMs’ focus on localization to improve cost competitiveness are some of the factors for reducing imports trend.
  • Aftermarket: With increasing vehicle parc in the country, the aftermarket in 2016-17 grew by 25.6 percent to 56,096 (USD 8.4 billion) crore from Rs.44,660 (USD 6.8 billion) in the previous fiscal.

 

*OEMs consumption include locally produced components & imports

Summary of Findings:

Figures in INR’ 00 Crores                                                                                                           

 

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

Turnover

2,046

2,160

2,117

2,348

2,556

2,921

Growth rate (percent)

8.7

5.6

-2.0

11.1

8.8

14.3

Export

427

526

614

685

709

731

Growth rate (percent)

40.7  

23.3

16.7

11.4

3.5

3.1

Import

667

744

771

829

906

905

Growth rate (percent)

34.3

11.6

3.6

7.5

9.3

-0.1

Figures in USD Billion

 

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

Turnover

42.2

39.7

35.1

38.5

39

43.5

Growth rate (percent)

2.2

-5.9

-11.5

9.6

1.3

11.7

Export

8.8

9.7

10.2

11.2

10.8

10.9

Growth rate (percent)

32.3

9.9

5.4

10.0

-3.7

0.8

Imports

13.8

13.7

12.8

13.5

13.8

13.5

Growth rate (percent)

26.2

-0.6

-6.4

6.1

1.8

-2.3

 

Note:

Turnover data represents the entire supplies from the auto component industry (ACMA members and non-members) to the on-road and off-road vehicle manufacturers and the aftermarket in India as well as exports. This also includes component supplies captive to the OEMs and by the unorganized and smaller players.

About ACMA:

The Automotive Component Manufacturers Association of India (ACMA) is the apex body representing the interest of the Indian Auto Component Industry. Its active involvement in trade promotion, technology up-gradation, quality enhancement and collection & dissemination of information has made it a vital catalyst for this industry’s development. ACMA’s charter is to develop a globally competitive Indian auto component Industry and strengthen its role in national economic development as also promote business through international alliances. ACMA is an ISO 9001:2008 certified Association.

For further details:

ACMA

Harkaran Malhotra

9818388411

harkaran.malhotra@acma.in

Avian Media

Vaibhav Arora | M: 9711995531 | E: vaibhav@avian-media.com

Anshika Mehta | M: 9953227612 | E: anshika@avian-media.com

Stuti Chhabra | M: 9973145222 | E: stuti@avian-media.com

 

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