The Indian auto parts industry experienced robust expansion in the first half of FY25, highlighted by a significant 11.3 percent increase in its market size, according to a report from the Automotive Component Manufacturers Association (ACMA).

The demand for Utility Vehicles (UVs) within the Passenger Vehicle (PV) segment grew by 13 percent, whereas UV1 models (ranging from 4000 to 4400 mm in length and priced under Rs 20 lakh) saw a 25 percent increase in sales.

The industry, estimated at USD 36.1 billion during the first half of FY24, increased to USD 39.6 billion in the first half of FY25. A range of trends has increased in the market, as buyers are shifting towards larger and more robust vehicles across all segments.

The motorcycle industry saw a 74 percent increase in sales for engines between 350cc and 500cc.

Electric vehicles have experienced significant expansion, with sales increasing by 22 percent during the first half of FY25 compared to last year. Although electric two-wheelers  experienced a growth of 26 percent, electric passenger vehicles (e-PVs) encountered a decline of 19 percent.

The USA, Germany, and Turkey became the primary destinations for Indian auto parts exports, whereas China, Germany, Japan, and Korea served as the major sources of imports.

In Asia, the overall exports reached USD 2.74 billion, and the projected imports for the area were USD 7.16 billion.

The provision to Original Equipment Manufacturers (OEMs) increased by 11.2 percent, reaching Rs 2.83 lakh crore (USD 33.8 billion), compared to Rs 2.55 lakh crore (USD 30.8 billion) during the same period last year.

In the initial half of FY25, the industry's overall scale reached Rs 3.32 lakh crore (USD 39.6 billion), with the supply to Original Equipment Manufacturers (OEMs) totaling Rs 2.83 lakh crore (USD 33.8 billion).

The aftermarket sector expanded by 5.0 percent, reaching Rs 47,416 crore (USD 5.7 billion), up from Rs 45,158 crore (USD 5.5 billion) during the initial half of FY24.