Auto Parts India's auto-parts industry records trade surplus of $700 million in 2021-22
New Delhi: India's auto parts makers have recorded a trade surplus of $700 million in the year 2021-222, as top automobile manufacturers around the world adopt a "China Plus One" strategy to shield the supply chains from the risks involved in relying completely on a single source in the wake of Covid-19.
In the previous financial year, 2020-21, the industry had recorded a trade surplus of Rs 500 million.
"Auto component exports out of India grew strongly last fiscal, reiterating the 'China Plus One' strategy being implemented by MNCs," said Sunjay Kapur, president, Automotive Component Manufacturers Association (ACMA), according to Economic Times.
Exports of auto components witnessed the growth of 43 percent to Rs 1.41 lakh crore ($19.0 billion) in 2021-22 in contrast to Rs 0.98 lakh crore ($13.3 billion) in 2020-21.
North America accounting for 32 percent of exports, saw a growth of 46 percent.
Shipments to Europe accounted for 31 percent and grew 39 percent during the period under review while 25 percent of exports were to Asian countries, which was a growth of 40 percent.
The key export items included drive transmission & steering, engine components, Body/Chassis, Suspension & Braking, etc.
Component imports grew by 33 percent in 2021-22 to Rs.1.36 lakh crore ($18.3 billion) from Rs.1.02 lakh crore ($13.8 billion) in 2020-21.
“Despite the supply-side issues, as vehicle sales and exports gradually gained traction, month-on-month, the auto component industry demonstrated a remarkable performance in FY2021-22. Significant growth was witnessed across all segments including supply to OEMs, Exports as also the Aftermarket," said Vinnie Mehta, Director General, Automotive Component Manufacturers Association of India (ACMA).
On the domestic front, auto component sales to OEMs, stood at Rs.3.41 lakh crore ( $45.8 billion), growing 22 percent compared to the previous year.
Enhanced raw material prices, consumption of increased value-added components and shift in market preference towards larger and more-powerful vehicles contributed to the increased turnover of the auto-components sector.
Increased movement of vehicles post-pandemic and surge in demand for used- vehicles led to buoyancy in the aftermarket, across all segments. The turnover of the aftermarket in FY 2021-22 stood at Rs 74,203 crore ($10.0 billion) compared to Rs 64,524 crore ($ 8.7 billion) in the previous year.
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