Everyone talks about four wheeler brands, two wheeler brands , new launches but not much is spoken about the auto component industry. The Indian auto component industry is driving into 2022 with a positive mindset in its quest to reach the pre-pandemic levels of sales volume, This industry is the backbone of whole auto OEMs.
They built a solid foundation in 2021 amid semiconductor shortage hampering production,
And now lets try to understand how they performed in the first half of financial year 21-22
Many will get surprised.
The Indian auto component industry has witnessed a growth of 65% during the first half of 2021-22, as exports and imports grow by 76% and 71% respectively. The aftermarket sector has also witnessed a growth of 25%.
The turnover of the automotive component industry stood at Rs.1.96 lakh crore for the period April 2021 to September 2021, registering a growth of 65% over the first half of the previous year.
-The component industry grew to Rs.1.96 lakh crore registering 65% growth.
-Exports grew by 76% to Rs.68.7 lakh crore
-And imports grew by 71% to Rs.64.3 lakh crore leading to a trade surplus of USD 600 million.
-The Aftermarket, estimated at Rs. 38,895 crore also witnessed a steady growth of 25 per cent. -Component sales to OEMs in the domestic market grew by 76% to Rs.1.53 lakh crore
Although the sector suffered a lot due to low demand for vehicles, supply-side issues of availability of semiconductors, increasing input costs, rising logistics costs, but in all this backdrop, Indian Auto component sector displayed remarkable resilience.
Now..we need to understand the future course..while the performance of the vehicle industry during the festive season has not been on expected lines, however, there are indications that the vehicle demand, in the coming months, will improve. This, together with the increased focus by the auto industry on deep-localisation and the recent incentive schemes by the Government will facilitate the creation of a state-of-the-art automotive value chain and develop India into an attractive alternative source of high-end auto components.
Despite the concerns of another wave of pandemic, the industry is cautiously optimistic about the prospects of the Indian economy and the automotive sector in the next financial year.