Auto components industry to grow 10-15% in FY24: ACMA

The auto components industry clocked a turnover of $56.5 billion in FY22 with a growth of 23% over the previous year

India's auto components industry is expected to grow around 10-15% in FY24, driven by both domestic and export market demand despite fears of recession in major markets of U.S. and Europe, Automotive Component Manufacturers Association of India (ACMA) said on Monday.

The auto components industry which clocked a turnover of $56.5 billion in FY22 with a growth of 23% over the previous year is expected to end FY23 with a growth of 15%.

The domestic components industry stands to gain from the manufacturing of components for internal combustion engines (ICE) moving to India as the major Western markets of U.S. and Europe migrate towards electric vehicles.

"In the first nine months that have gone by, that is until December 2022, our export and import continue to be really very well balanced and they are both at $15.1 billion," Automotive Component Manufacturers Association of India (ACMA) Director General Vinnie Mehta told reporters in an interaction here on the sidelines of an event organised by the industry body.

He said, "We are wary of the fact of the headwinds because of recessionary trends in Europe and the U.S.

“Despite these trends, we feel that our exports are growing in the expected trajectory. We haven’t found any slowdown happening in exports. Also imports, because the domestic market has picked up quite strongly.”

When asked about the outlook for FY24, Mr. Mehta said, “On a conservative approach, for FY24 (we) will surely grow in the range of 10-15%.”