InvestorQ : Have the auto ancillary companies reported record profits for FY22?
Deepa Salunkhe made post

Have the auto ancillary companies reported record profits for FY22?

Arya Nanda answered.
1 month ago

The Auto Components Manufacturers Association (ACMA) has just reported that total sales recorded by the Indian auto component industry stood at a record Rs420,000 crore for FY23. This was largely led by sharp growth in demand from the auto sector. The auto components sales revenues were up 23% yoy supported by a strong export performance too. The sales growth was robust across both the sub-segments of auto components viz. the OEM (original equipment manufacturer) segment and aftermarket (replacement) market.

For FY22, imports of auto parts (principally from China and Germany) surged 33%. However, this was more than offset by the 43% growth in the exports of auto parts. Total auto component exports for FY22 stood at Rs141,000 crore or nearly 27% of auto component sales for the full year. India is one of the leading suppliers of auto components to marquee companies in the US and Europe. In terms of the geographical break-up of exports; North America accounts for 32%, Europe 31% and Asia accounts for 25%.

Let me also dwell on how the overall market is broker up between the OEM market and the aftermarket (replacement market). The OEM market accounts for 82% of the overall auto component demand but there is steady traction that is visible in the aftermarket segment too. It is not just that the aftermarket accounts for 18% of total sales turnover but that it has grown at an impressive clip of 15% in FY22. In FY22, the sales of auto components has crossed the pre-pandemic levels. In FY23, this sector will gain from Chip supplies reviving.