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Facing potential production losses due to a shortage of rare earth magnets, the auto component industry body ACMA on Tuesday sought a national strategy on critical materials to secure electric vehicle production in the country. Terming the rare earth shortages as a major concern, Automotive Component Manufacturers Association of India (ACMA) President Shradha Suri Marwah said that the industry is agile and has started to work on alternative solutions. "The limited availability of rare earth magnets remains a concern, underscoring the need for a national strategy on critical materials to secure the future of EV and mobility manufacturing in India," she stated. Despite various geopolitical issues and supply chain challenges, the auto components industry reported a turnover of USD 80.2 billion for FY2025, a growth of around 10 per cent as compared with FY2024, Marwah stated. The industry grew at a CAGR of 14 per cent from FY20 to FY25, nearly doubling in size over a period of past fiv
Major auto component firms are likely to invest Rs 25,000-30,000 crore in the next fiscal for capacity expansion and localisation, including electric vehicle (EV) parts, ratings firm ICRA said on Thursday. The sector is also expected to invest in capacity enhancements and upcoming regulatory changes. "ICRA's interaction with large auto component suppliers indicates that the industry is estimated to spend Rs 15,000-20,000 crore in FY2025 and another Rs 25,000-30,000 crore in FY2026," Vinutaa S, Vice President and Sector Head, Corporate Ratings, ICRA Ltd said in a statement. The incremental investments would be made towards new products, product development for committed platforms and development of advanced technology and EV components, apart from capex for capacity enhancements and upcoming regulatory changes, she added. The rating agency said it expects the revenue growth of the Indian auto component industry (represented by a sample of 46 auto ancillaries with aggregate annual ..
Auto component maker ASK Automotive on Tuesday reported a 63 per cent rise in consolidated net profit to Rs 67 crore in the July-September quarter of 2024-25 compared to the year-ago period. The country's largest brake shoe and advanced braking systems manufacturer for two-wheelers had reported a net profit of Rs 41 crore in the second quarter of the previous fiscal. Total income during the quarter under review increased 22.2 per cent to Rs 976 crore from Rs 798 crore in the corresponding quarter of FY 24, the company said. EBITDA (earnings before interest, taxes, depreciation and Amortisation) stood at Rs 119 crore in the September quarter, up 50.3 per cent from Rs 79-crore in Q2FY24, ASK Automotive said. "We had a strong finish to the second quarter and first half of the year in both revenue and profitability. This is the fourth consecutive quarter of robust performance by us since listing of the company last year. During Q2 FY25, we delivered strong performance in business and
The turnover of the automotive component industry rose by 9.8 per cent year-on-year to Rs 6.14 lakh crore for the fiscal ended March 31, 2024, industry body ACMA said on Thursday. The industry had reported a turnover of Rs 5.59 lakh crore in the 2022-23 financial year. Component supply to OEMs (original equipment manufacturers) in the domestic market grew by 8.9 per cent to Rs 5.18 lakh crore, with supply to the EV manufacturing industry accounting for 6 per cent of the total component production in the country, the Automotive Component Manufacturers Association of India (ACMA) stated. Exports grew by 5.5 per cent year-on-year to USD 21.2 billion in the last fiscal while imports grew by 3 per cent to USD 20.9 billion, thus resulting in a trade surplus of USD 300 million, it stated. The aftermarket, estimated at Rs 93,886 crore, also witnessed a growth of 10 per cent in FY24, ACMA said. "It is pertinent to note that apart from an increase in vehicle production, higher value additio