Business

Component industry in Top Gear, double digit growth expected due to rising vehicle sales

Photo:FILE Auto Component

vehicle parts The industry expects double digit growth in the current financial year. The industry had recorded the highest turnover in the financial year 2021-22. According to the Association of Automotive Component Manufacturers (ACMA), the sector recorded a turnover of Rs 4.2 lakh crore in the last financial year, which is 23 per cent higher than in 2020-21. During this period, the production of passenger and commercial vehicles grew by 20 percent and 30 percent, respectively. Vehicle sales increased due to increased demand and easing of supply-side constraints. Original Equipment Manufacturers (OEM) auto parts sales in the domestic market stood at Rs 3.41 lakh crore in the last fiscal, up 22 per cent over the previous fiscal.

Sales expected to grow in double digits

Similarly, auto parts exports grew by 43 per cent to Rs 1.41 lakh crore in 2021-22. This figure was Rs 0.98 lakh crore in 2020-21. ACMA President Sanjay Kapoor said sales are expected to grow in double digits in the current financial year as well. “If the growth trend continues, we have no reason to think that it will not happen,” he said. Demand is good, manufacturing looks strong. If something doesn’t happen that is out of our control, like a pandemic, a lockdown or a global recession, then everything is on the right track.”

Sales return to pre-pandemic levels

Kapoor said the sector has come down to pre-pandemic levels in terms of sales and the next phase of growth is expected to come from new platforms. He predicted a boom in the two-wheeler and commercial vehicle segment in the coming days.

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