New Delhi - The Indian Auto Component Inc.’s cumulative growth in the last five years has touched 4.1 percent, with the rate of growth (5.7%) in exports being double that of imports, thereby helping reduce the trade deficit, which, in FY19 was pegged at US$ 2.5 billion.

However, with the aggressive push of global automakers to de-risk their supplies and look for alternative sourcing destinations beyond China, broadly termed as the industry’s ‘China+1’ strategy, India is gaining strong momentum in witnessing a heightened interest in demand for Made-in-India components, and as result, is poised to become the global hub in automotive component manufacturing for the world.

Addressing the media at the announcement of the automotive component industry’s FY23 results, Sunjay Kapur, President, ACMA, said, “The industry has had a great year, and with domestic sales in Europe and the US growing by 3 and 8 percent, respectively, there has been little impact of the looming recession in these regions, therefore driving the exports of components from India.

“The ‘China+1’ de-risking strategy of OEMs augurs well for the country to become a global manufacturing hub for automotive components. The technology implementation in manufacturing in terms of automation, and Industry 4.0 solutions will strengthen the industry from catering to the demand for the global markets,” he said.

The India Auto Components Inc’s FY23 exports turnover was pegged at US$ 20.1 billion, up from US$ 19.1 billion a year ago. While the US and European Union, at around 32 percent contribution each, remained the top destinations for components exports from India, robust growth of 27 percent was also witnessed in exports of components to Latin America. In terms of parts, Indian auto components Inc exports drive and transmission, steering, and engine components among others.

“The industry has had a great year, and with domestic sales in Europe and the US growing by 3 and 8 percent, respectively, there has been little impact of the looming recession in these regions, therefore driving the exports of components from India,” Kapur said.