IAB Report – Indian auto components industry decline by 2 percent in 2013-14

Posted on: Jul 18, 2014 - 9:18am IST

The Indian automobile component industry had declined by a negligible 2 percent in the year ended March 2014. A report by the Automotive Component Manufacturers Association on India (ACMA) says that the turnover of the industry stood at Rs 2.11 lakh crore ($35.13 billion) between April 2013 and March 2014.

The 2 percent decline sees the CAGR over the last 6 years rest at 14 percent. The decline comes thanks to flagging vehicle sales, currency fluctuations and delay in investment decisions by OEMs, among other factors. However, thanks to the resumption of growth in the passenger vehicle sales segment over the last 2 months, ACMA predicts that this fiscal would see the components industry growing by 4-6 percent.

ACMA 2013-14 figures
The components industry fell by 2 percent over the 2013-14 fiscal.

While the industry as a whole took a fall, exports rose sharply by 16.7 percent from Rs 52,690 crore ($9.7 billion) to Rs 61,487 crore ($10.2 billion). While Europe received a majority of Indian component exports, with 38 percent going to the continent, 25 percent went to other parts of Asia and 21 percent to North America.

Imports also grew, by 3.6 percent to Rs 77,160 crore ($12.8 billion) from Rs 74,463 crore ($13.7 billion) in the last year. Asia and Europe contributed 57 percent and 34 percent respectively. The aftermarket segment, crucially, grew by a healthy 12 percent from Rs 35,603 crore from Rs 31,788 crore in the last year.

Thanks to decreased manufacturing by OEMs, suppliers/component manufacturers spent just $0.5 billion to $0.7 billion on capacity addition themselves.

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One thought on “IAB Report – Indian auto components industry decline by 2 percent in 2013-14

  1. Dr. Nayak says:

    The automotive component Industry in India is turning out more like cell phone Industry; Import the components form third world countries and silkscreen your name on it. Some even go to the extent of grinding the raised monograms and hot stamp the place with fresh logo. When this is done there is no need for the OEM replacement parts, as they can be easily sourced from the black/gray market at lower price point. NAMO, NAMO and NAMO!

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Karthik
Karthik H

A bit of a car freak and a bike nut, and a fan of trucks and technology too. Expect sharp stories that focus on those four fronts. As always, stay tuned to IndianAutosBlog.com for quick and unassuming updates from across the world.