India’s auto components industry is expected to grow around 10-15 per cent in FY24, driven by both domestic and export market demand despite fears of recession in major markets of the US and Europe, Automotive Component Manufacturers Association of (ACMA) India said on Monday.

The auto components industry which clocked a turnover of $56.5 billion in FY22 with a growth of 23 per cent over the previous year is expected to end FY23 with a growth of 15 per cent, ACMA said on Monday.

“We are on track....We have done $15.1 billion in the first nine months, in both import and export. Last year we did $19.1 billion in the entire year,” Sunjay Kapur, President, ACMA, said.

Semicon shortage

Talking about semiconductor shortage, which is looming again and companies such as Maruti Suzuki India and Mahindra & Mahindra saying it continues to be dynamic, Kapur said, “it is more to do with the capacity requirements which have increased across the board – whether it is automotive industry or electronics/ FMCG. But, I don’t think it is a long-term problem”.

On recessionary trends in Europe and the US, Kapur said given the fact that it (growth) is continuing, the components industry expects things to continue in the same way. “We’re not seeing any signs of a major recession in the US, the way people have talked about it last year, or the last quarter of the last calendar year,” he added.

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