New Delhi. The auto component sector may perform well in the current financial year due to strong economic signals, favorable government policies and India's GDP growing at the rate of 7 percent. This information has been given by the industry.
The auto component industry’s turnover stood at an alltime high of $74.1 billion in FY24, driven by increased production, strong exports and robust market demand.
Automotive Component Manufacturers Association of India (ACMA) has said that the growth has been seen due to increased production of vehicles and value addition in the component sector.
Driven by continued growth in the automotive industry, the performance of the component industry has returned to prepandemic levels in most categories.
Despite global challenges, the industry has achieved a growth rate and business profit of 9.8 per cent yearonyear in FY24.
ACMA said the auto component market grew 10 per cent last fiscal to $11.3 billion.
ACMA Director General Vinnie Mehta said the supply of components to OEMs in the domestic market grew by 8.9 per cent to Rs 5.18 lakh crore.
Of the total auto components manufactured in the country, 6 percent are being used in EV manufacturing.
At the same time, export of auto components has increased by 5.5 percent to $ 21.2 billion, which was earlier $ 20.9 billion.
Subros CMD and ACMA President Shraddha Suri Marwah says that the growth rate of imports is low. This has led to business benefits and it shows that the industry is moving towards localization.
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– / Written By Top News Bulletin
Image Credit: KhasKhabar.