Record $70 bn revenue for auto parts makers

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electric vehicle parts, barring EV batteries, to overall auto components supplies to 2.7%, compared to 1% in FY22. India’s EV component sales are dominated by electric two- and three-wheelers, with electric passenger vehicles (four-wheelers) representing just 1.0-1.5% of total EV sales. The auto components segment has been growing at a compound annual growth rate (CAGR) of 4.1% over the last five years.

ACMA represents over 800 auto component manufacturers across tier-1, 2, and 3 levels and uses a mathematical model to arrive at its turnover volumes, which is then verified with industry stakeholders, including agencies. It sources trade data from the government. “The domestic industry has definitely seen growth, which is really a bounce back from where we were.

The export opportunity has risen, too. We are at $20 billion in terms of exports and $70 billion in revenue. I think the China +1 strategy is playing out from a value addition perspective.

What we’re doing in terms of investments in technology is paying off for us now. Many OEMs are looking towards new technologies, and we’re able to follow suit, and providing them the technology solutions that they require. That’s really where a lot of the value addition comes in.

With the increase of EVs, there is more movement towards supplying them because that’s the global trend. I see it continuing, and we’re going to invest more in products for EVs," Sunjay Kapur, ACMA president, said. Kapur expects India’s reliance on China for imports of various components including engine parts, vehicle chassis, suspension and braking systems and electronics which has remained at a stable 20%-30% of all its total imports for the last five years to gradually come down.