NEW DELHI: China still accounts for the majority of automotive component imports in India with its share coming at 30% in the financial year 2022-23, according to data released by the Automotive Component Manufacturers Association of India (ACMA) on Monday.
China was the biggest source of auto components import, accounting for 30%, in FY21-22 as well. Component imports in India grew by 10.9% in FY23 to Rs 1.63 lakh crore ($20.3 billion) from Rs 1.36 lakh crore ($18.3 billion) in 2021-22. Region-wise, Asia accounted for 66% of imports followed by Europe and North America at 26% and 6% respectively.
ACMA Director General Vinnie Mehta said the component industry is looking to enhance exports while reducing imports, especially from China. As per him, from a peak trade deficit of $2.5 billion a couple of years ago in 2019, the industry has moved to a better position with a trade deficit of just $200 million in terms of imports.
Sunjay Kapur, President, ACMA & Chairman, Sona Comstar said, “The ‘China+1’ de-risking strategy of OEMs augurs well for India to become a global manufacturing hub for automotive components.”
Exports of auto components saw growth of 5.2% to Rs 1.61 lakh crore ($20.1 billion) in 2022-23 in contrast to Rs 1.41 lakh crore ($19.0 billion) in 2021-22. North America accounting for 32% of exports, saw a growth of 8%. Europe accounted for 31% and Asia for 26% grew 3% and 4% respectively.
India’s overall automotive components industry in FY22-23 grew by 32.8% to Rs 5.60 lakh crore ($69.7 billion) as against Rs 4.20 lakh crore ($56.9 billion) earned in FY21-22. The component industry last fiscal outpaced its highest-ever turnover of $57.1 billion (as per prevalent exchange rates) in FY19.