For the first time in five
years, “Make in India” lost some of its sheen in the Indian auto components
industry as imports increased dramatically and exports recorded a negative
growth. Exports recorded (-) 3.7pc growth at US $ 10.8 billion in 2015-16, as compared
to the previous financial year exports of $ 11.2 billion. But what was a little
alarming was the fact that imports recorded a growth of 1.8pc at $ 13.8
billion, surpassing the figures of exports.
Overall in dollar terms, the
Indian auto components industry grew by 1.3pc, recording a turnover of $39
billion, as compared to $38.5 billion the previous year. Even though the
industry may have lost out on the exports front in dollar terms, thanks to a
weak rupee against the US dollar, the Indian auto component industry exports
actually recorded a positive growth in rupee terms.
See the charts:
Figures in US$ Billion
Growth rate (%)
in Rs ‘00 crores
Coming to exports, it was a
thumbs down for Indian auto components in several regions like Africa, Asia,
Europe, New Zealand & Australia and South America. The only regions that
saw a positive growth in exports were Central America and North America. In
Africa, there was a 14pc drop in exports from $ 817 million in 2014-15 to $ 699
million. In Asian region, exports dropped 3pc from $2798 million to $ 2722
million. In Europe the drop was 6pc from $4125 million to $ 3866 million. The industry recorded a
2pc drop in exports in New Zealand & Australia from $80 million in 2014-15
to $78 million in 2015-16. South America recorded a degrowth of 19pc, from $546
million to $ 444 million.
Central America, on the other
hand, recorded a 30pc increase in exports from $243 million to $315 million,
while North America recorded a 3pc growth from $ 2609 million to $2677 million
in the period under consideration.
Overall, Europe accounted for
36pc of auto components exports, followed by North America and Asia at 25pc
each. The Africa region accounted for 6pc of exports, followed by South America
at 4pc and Central America at 3pc.
Addressing the media in New
Delhi, Arvind Balaji, president, ACMA, noted that exports are slow for which he
balmed the global markets which were not growing. He however said that the
components industry in India is expected to record a double digit growth in the
current fiscal, provided the monsoons are normal as predicted.
The data provided to the media
represents the entire supply from the auto component industry (ACMA members and
non-members) to the on-road and off-road vehicle manufacturers and the
aftermarket in India as well as exports. The data also includes component
supplies captive to the OEMs and by the unorganised and smaller players.
Vinnie Mehta, Director
General, ACMA commented, “The performance of auto component industry in FY
15-16 has been satisfactory. This is
despite a less than expected performance in the Passenger Vehicles,
Two-wheelers and Tractors segments. With the ‘Make in India’ initiative and
thrust on increased localisation by OEMs, the component industry is actively
focussing on delivering enhanced quality products, as well as, on R&D and
On the imports front, Asian
imports were to the tune of 58.6pc, followed by Europe at 30.9pc and others.
But what continues to be a worry is the fact that China alone accounted for
23.15pc of imports, followed by Germany at 14.29pc, South Korea at 11.2pc,
Japan at 10.65pc, Thailand at 8.07pc, etc. Balaji admitted that Chinese imports
were a challenge while Mehta said that these rising imports were a matter of
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