India's Auto Part Exports Rise 8% To USD 22.9 Bn In FY25

(MENAFN- KNN India) New Delhi, Jul 9 (KNN) India's automotive component exports increased by 8 per cent to USD 22.9 billion during the financial year ending March 2025, driven by robust demand from Asia, Africa, and North America, according to data released by the Automotive Component Manufacturers Association of India (ACMA) on Tuesday.

North America remained the largest destination for Indian auto component exports, accounting for nearly one-third of total shipments. Exports to the region grew by 8.4 per cent to USD 7.35 billion during the fiscal year.

Asia emerged as another strong growth market, with exports jumping 15.1 per cent to USD 5.92 billion, while shipments to Africa surged 16.7 per cent to USD 1.16 billion.

However, exports to Europe declined by 2.1 per cent year-on-year to USD 6.75 billion in 2024-25, reflecting challenges in the region. Despite this decline, the overall export performance demonstrated India's expanding presence in global automotive supply chains.

ACMA Director General Vinnie Mehta announced that India achieved a trade surplus of USD 453 million in the auto component sector during 2024-25, representing an increase from the USD 300 million surplus recorded in the previous fiscal year.

He characterised this performance as evidence of India's growing manufacturing competitiveness in the global market and the success of localisation initiatives.

The industry faces several challenges in the current financial year, particularly regarding China's restrictions on rare earth magnets. Mehta indicated that the curbs have negatively impacted the sector, with no immediate resolution in sight.

He identified rare earth magnet availability, freight costs, and raw material price volatility as key factors posing serious challenges to the auto component industry.

China supplies nearly one-third of India's auto component imports, with Germany, Japan, South Korea, and the United States serving as other major sources.

The dependence on Chinese rare earth magnets has become a critical supply chain concern for Indian manufacturers.

The domestic automotive component industry demonstrated strong overall performance during fiscal year 2024-25, with gross turnover increasing by 9.6 per cent to Rs 6.73 lakh crore compared to the previous year.

The industry achieved a compound annual growth rate of 14 per cent from FY20 to FY25, nearly doubling in size over the five-year period.

ACMA President Shradha Suri Marwah noted that the fiscal year witnessed broad-based growth and recovery across segments.

Two-wheelers demonstrated particularly robust growth, while passenger vehicle and commercial vehicle segments experienced steady but moderate momentum.

Despite ongoing geopolitical challenges that have created supply chain disruptions, Marwah emphasised that the industry continues to demonstrate remarkable resilience and remains in robust health.

The export performance underscores India's strengthening position as a global automotive component manufacturing hub.

(KNN Bureau)

MENAFN09072025000155011030ID1109779118