India’s Auto Parts Industry Expands 9%

India’s auto parts industry expanded 9% to $39 billion in the fiscal year ended March 31, reports the Automotive Component Manufacturers Assn of India.

ACMA, which represents 750 of the country's vehicle component producers, says exports expanded 4% to account for $10.8 billion of the parts industry’s volume last year. Europe received 36% of India's exports, with Asia and North America each buying 25%.

India’s component shipments consist primarily of powertrain components, brake and exhaust systems, turbochargers and vehicle body components.

The country’s aftermarket parts business grew 12% to $6.8 billion in the last fiscal year, according to ACMA. Growth was led by Asia (+59%) and Europe (+31%).

ACMA projects the industry’s annual turnover will reach $80 billion by 2020. The Indian government’s Automotive Mission Plan has targeted annual sales volume for parts makers of $200 billion by 2026.

But analysts say the key to achieving such dramatic growth will be a significant improvement in the country’s tier-two supply base. They say greater expertise will be especially important in such technologies as hybrid and all-electric powertrains.

ACMA says India’s imports of auto components climbed 9% to $13.8 billion last year. Most of those parts came from Asia (59%) and Europe (31%).