Auto component sector may witness double digit growth in FY 23

22 Dec 2022 , 06:27 AM

Due to strong domestic market demand, the auto component sector expects to post double-digit growth in the current fiscal year.

In total, sales revenue increased 27.3% to $33.8 billion in the first half of the fiscal year. While sales to OEMs (original equipment manufacturers) increased by 38% to $28.6 billion during the same time, aftermarket sales increased by 2% to $5.4 billion.

However, the local market’s robust surge in demand for cars resulted in a rise in imports. In the time frame under consideration, imports of car parts increased by 17.2% to $10.1 billion.

Asia accounted for 65% of imports, with 26% and 8% of those coming from Europe and North America, respectively. Up until September of current fiscal year, imports from North America rose by 29%, from Europe by 6%, and from Asia by 21%.

Exports increased by 8.6% to $10.1 billion, balancing the trade surplus the sector experienced during the previous fiscal year. Exports to North America, which account for 33% of total exports, increased by 12%, while exports to Europe and Asia, which account for 30% and 26% of total exports, respectively, increased by 4% and 11%.