turnover of the Indian automotive component industry has registered a de-growth
of (-) 11.7 per cent compared to the previous year at Rs. 3.49 lakh crore (USD
49.2 billion) for the period April 2019 to March 2020.
were some of the findings of the Industry Performance Review for the fiscal
year2019-20 announced by the Automotive Component Manufacturers Association of
India (ACMA), the apex body representing India’s auto component manufacturing
Mehta, Director General, ACMA said, “The overall vehicle industry witnessed a
severe downturn in 2019-20that saw its sales slump by 18%. The component
industry, in tandem, posted a subdued performance with de-growth of 11.7 per
cent over the year, registering a turnover ofRs.3.49 lakh crore (USD 49.2
said the Auto Component Aftermarket at Rs.69,381 crore (USD 9.8 billion)
remained stable while sales to OEMs in the domestic market at Rs.2.87 lakh
crore (USD 40.5 billion) declined 17 per cent. Both Imports and exports
declined by 11.4 per cent and 3.2 per cent respectively; Imports stood at Rs.
1.09 lakh crore (USD 15.4 billion), while exports at Rs. 1.02 lakh crore (USD
Jain, President, ACMA said, “The automotive industry faced a prolonged slowdown
in FY 2019-20 with vehicle sales in all segments plummeting significantly.
Subdued vehicle demand, investments made for transition from BSIV to BSVI,
liquidity crunch, lack of a clarity on policy for electrification of vehicles
and slow-down in key export markets, among others, had an adverse impact on the
performance of the components sector in India as also on its expansion plans”.
auto component industry has displayed remarkable resilience in wake of the
lockdown; the industry faced acute challenges on the front of working capital,
production and dysfunctional logistics. However, with unlocking of economy,
growth seems to be returning to the industry with uptick in vehicle consumption
especially in the two-wheelers, passenger vehicles and the tractor segments,
although sales of commercial vehicles continue to be challenged,” Jain added.
however, expected the component industry’s performance to return to pre-COVID
levels by the festive season should the ramp-up be not stymied by lockdowns in
manufacturing zones and lack of availability of manpower.
forward, to allow for uninterrupted production in the automotive value chain,
despite local lockdowns, ACMA has recommended to the Government to accord
‘continuous production industry’ status to the automotive industry”, he noted.
long-term prospects of the Indian auto component industry continue to be
bright, especially with focus of the Government on ‘Atma-nirbharta’ and global
competitiveness of the industry, he said. “The auto component industry and the
vehicle industry are closely working together for ‘deep-localisation’ and import
substitution, which will result in higher value-addition by the auto component
manufacturers making the sector exports competitive”, added Jain.
meanwhile, continues to support the vehicle industry in their request to the
government for enhancing vehicle demand in the country through reduction in GST
on all vehicle categories to 18 per cent and introduction of an incentive based
the components sector, ACMA continues to recommend a uniform 18 per cent GST
rate across the auto component sector; currently 60 per cent of the auto
components attract 18 per cent GST rate, while the rest 40 per cent, majority
of which are two-wheelers and tractor components, attract 28 per cent. The
latter high rate has led to flourishing grey operations in the aftermarket. A
benign rate of 18 per cent will not only ensure better compliance but will also
ensure a larger tax base.
findings of the ACMA Annual Industry Performance Review for 2019-20:
Exports of auto components witnessed degrowth of 3.2 per cent to Rs.1.02 lakh
crore (USD 14.5 billion) in 2019-20 from Rs 1.06 lakh crore (USD 15.2 billion)
in 2018-19. Europe accounting for 30 per cent of exports, saw a decline of 11
percent, while North America and Asia, accounting for30 per cent and 27 per
cent respectively remained stable.
key export items included drive transmission & steering, engine components,
Body/ Chassis, Suspension & Braking etc.
Slowdown in the domestic market also reflected on imports of component into
India. Component imports fell by 11.4per cent to Rs.1.09 lakh crore (USD
15.4billion) in 2019-20 from Rs.1.23 lakh crore(USD 17.7billion) in 2018-19.
Asia accounted for 65 per cent of imports followed by Europe and North America
at26 per cent and 8 per cent respectively. Imports from Asia declined by 7 per
cent, while those from Europe by 22 per cent and from North America by 17 per
The aftermarket in FY2019-20remained stable despite a downturn in the vehicle
industry. The turnover of the aftermarket stood at Rs 69.381 crore (USD 9.8
billion)growing marginally by 2.8 percent over the previous year.
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