According to industry group ACMA, India's auto component sector recorded its highest-ever revenue of Rs 4.2 trillion in 2021–22, growing by 23% as a result of good aftermarket and export results. The phrase "aftermarket" refers to the market for car parts that are used to swap out defective original auto parts.

The Automotive Component Manufacturers' Association of India (ACMA) said that while imports of car parts increased by 33% in 2021–2022, exports increased by 43% over the same time.

According to ACMA, India's auto component sector exported parts worth Rs. 1.41 trillion in 2021–2022 and imported vehicle parts worth Rs. 1.36 trillion during that same year.  China is the top importer of car components, accounting for over 30% of all imports.  Germany, which accounts for around 11% of India's auto part imports, is the second-largest supplier.

"Exports to North America, which make up 32% of total exports, increased by 46%. According to ACMA, Europe, which made up 31% of global growth, and Asia, which accounted for 25%, experienced respective growth rates of 39% and 40%. Drive transmission and steering, engine components, bodies, chassis, suspension, and brakes were major exports during the previous fiscal year.

The turnover of auto components' aftermarket stood at Rs 74,203 crore in 2021-22, clocking a growth rate of 15 per cent over the previous year.

Due to an increase in the number of vehicles on the road, increased vehicle use, rising demand for used cars, rising commodity prices, and the emergence of new sales channels like online retailers and multi-brand outlets, the aftermarket's turnover exceeded pre-pandemic levels in 2021–22, according to ACMA.

It said, the country's auto component industry is facing a number of challenges,  including a shortage of chips, high raw material and logistics costs, the availability of containers for transporting auto components, rising inflation, rising fuel prices, high insurance costs, slower-than-expected growth in the two-wheeler segment, and high GST rates on auto components.

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