The auto component sector in India is optimistic, though cautious, about the prospects of the automotive sector’s health in FY22, said a statement from Automotive Component Manufacturers Association (ACMA).
The auto sector was sluggish in FY21 with Q1 stressed during the lockdown but by the second quarter, economy recovered, and so did auto sales month-over-month starting July, said Vinnie Mehta, Director of ACMA.
The auto component industry posted a de-growth of 34pc in H1 (April-September) compared to the previous-year period with a turnover of $15.9bn. In this period, it was the first time when industry was a net exporter, with exports valued at $5.2bn and imports at $5bn.
However, exports and imports declined by 23pc and 32pc, respectively, from the previous year. The aftermarket’s degrowth was at 15pc or Rs311.16bn. Component sales to OEMs also dipped by 42pc to $11.6bn.
The auto component industry showed resilience and recovered strongly from the consequences of the pandemic, said ACMA president, Deepak Shah. He hailed the support from the OEMs and government to aid the auto sector by attending to the supply-side challenges.
Auto demand will sustain in the coming months after the festive season when demand was brilliant, said ACMA. Deep localization and recent announcement of Production Linked Incentive (PLI) scheme for auto sector and battery manufacturing industry is supporting the component sector in becoming self-reliant.