India's auto-component exports set to grow; Africa key market: ACMA

India's auto component exports to sustain growth; Africa emerges as potential market: ACMA President

New Delhi, September 1

Speaking to ANI on the sidelines of the 66th Annual Session of ACMA, Viji said India's auto-component exports stood at around USD 24.5 billion, registering about 7 per cent growth over the previous year, and are expected to continue growing.

"We've seen exports total is about 24 and a half billion...we've seen about 7 per cent growth in exports over the last year. So that's the numbers we have...we expect it to continue growing."

At the same time, he identified Africa as a potential market for Indian auto-component manufacturers due to its large consumer market with few vehicle manufacturers. He added, "Some of the Indian companies are already supplying into that market."

Viji said the industry is not facing any significant shipping crisis, although temporary disruptions could arise due to ongoing global conflicts.

When asked about rare-earth magnets licence, he said, "Licences have not been granted to any Indian companies. So, what we are doing right now is to keep the supply chains running. We are importing finished components or semi-finished components instead of just the pure magnets."

He said the industry has also faced short-term supply-chain challenges due to fluctuations in aluminium prices and the LPG crisis, but government interventions and greater resilience across the supply chain have helped the sector manage these disruptions.

On exports, Viji said shipments from India have continued to grow, with Europe witnessing sustained growth despite exports to the US remaining largely steady amid trade tensions and tariff-related uncertainty.

Apart from this, Viji highlighted that inflation has not yet significantly impacted demand, with strong demand helping the industry absorb rising costs. He added that companies are exploring alternate sourcing and suppliers in other regions to contain the impact of higher commodity prices, although some of the cost increases are likely to be passed on to consumers.

On the proposed US tariff on countries buying Russian oil, Viji said any such measure could affect the industry, but added that there was still considerable uncertainty over how the policy would evolve.

"If a tariff like that were to come through, I'm sure it will have an impact...I think there's still time yet to see where that goes. There's a lot of uncertainty around exactly where that's going."

On free trade agreements (FTAs), he said there has been strong momentum, with some agreements already signed and others in the implementation stage. He said FTAs could provide a positive boost to trade beyond simply reducing tariffs.

"I think there's been great momentum on the FTAs. Some of them are signed and ready to work on," he said.

— ANI