Indian Auto Component Industry Grows by 18.3% in 2017-18

Indian Auto Component Industry Grows by 18.3% in 2017-18
Indian Auto Component Industry Grows by 18.3% in 2017-18

Automotive Component Manufacturers Association of India (ACMA) has announced the findings of its Industry Performance Review for the fiscal 2017-2018. It is pertinent to mention that the automotive component industry contributes 2.3% to India’s GDP and has a share of 4% in India’s exports and its turnover stood at Rs.3.45 lakh crore (USD 51.2 billion) for the April 2017-March 2018 period, registering a growth of 18.3% over the previous year. Exports of auto components grew by 23.9% to Rs 90,571 crore (USD 13.5 billion) from Rs 73,128 crore (USD 10.9 billion) in 2016-17. Europe accounted for 34% of exports, followed by North America and Asia, with 28% and 25% respectively.

The above data represents the supply from auto component industry (ACMA members and non-members), on-road and off-road vehicle manufacturers and the aftermarket in India along with exports. The data also includes component supplies captive to the OEMs.

Nirmal Minda, President, ACMA said that the dynamics of the automotive market is undergoing a significant transformation as the industry strives to become compliant to various emission, safety and environment-related regulations, including migration from BSIV to BSVI. Key trends such as vehicle connectivity, electrification of vehicles, shared mobility, Industry 4.0 are also redefining mobility, he added. Minda stated that the auto component sector needs to be encouraged with supportive government policies like a uniform 18% GST rate across the auto component sector (currently 60% of the auto components attract 18% GST rate, while the rest 40%) so that they are able to cater to changing customer needs and stay relevant. Vinnie Mehta, Director General, ACMA said that the year gone by has witnessed an upswing in the overall performance of the industry, despite several regulatory challenges.