India's Auto Component Industry Strong Signs of Recovery

India's auto component manufacturing industry's turnover rose 65 per cent during the first half of fiscal 2021-22, on a year-on-year basis, said Automotive Component Manufacturers Association of India (ACMA).

The turnover of the automotive component industry rose to Rs 1.96 lakh crore for the period April-September 2021, registering a growth of 65 per cent over the first half of the previous year.

Besides, exports grew by 76 per cent to Rs 68.7 lakh crore ($9.3 billion) while imports grew by 71 per cent to Rs 64.3 lakh crore ($8.7 billion) leading to trade surplus of $600 million.

"Despite resurgence of demand for vehicles, supply-side issues of availability of semiconductors, increasing input costs, rising logistics costs and availability of containers, among others, continue to hamper recovery in the automotive sector," ACMA President Sunjay Kapur said.

"The auto component industry, against this backdrop, displayed remarkable resilience. Increased value-addition to meet regulatory compliance, fast recovery in external markets and traction in the domestic aftermarket market have contributed to the growth of the sector in the first-half of FY 2021-22."