India’s auto component industry registers de-growth in H1 FY2021.
Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s Auto Component manufacturing industry today said the turnover of the automotive component industry registered a de-growth of 34 per cent at USD 15.9 billion during the first half
Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s Auto Component manufacturing industry today said the turnover of the automotive component industry registered a de-growth of 34 per cent at USD 15.9 billion during the first half of this fiscal as compared to last year.
According to the industry body, the auto industry witnessed a downturn in FY2019-20, the situation further aggravated with the outbreak of the pandemic and the lockdown.
“While the first quarter for FY20-21 was significantly stressed, however with unlocking of the economy, the sales of vehicles witnessed improvement, month-on-month, in the second quarter. The component industry, in tandem, posted a subdued performance with de-growth of 34 per cent over the first half of the last fiscal, registering a turnover of USD 15.9 billion,” ACMA Director General Vinnie Mehta said.
Interestingly, for the first time ever, the industry witnessed a trade surplus with auto component exports at USD 5.2 billion and imports at USD 5.0 billion, registering a decline of
23.6 per cent and 32.7 per cent, respectively.
The aftermarket also witnessed de-growth of 15 per cent, while the component sales to OEMs in the domestic market contracted the most to USD 11.6 billion, declining 42 per cent.
“In the backdrop of the pandemic and the lockdown, the automotive industry faced unprecedented challenges in the first-half of FY 2020-21. The auto component industry, through agility, flexibility and financial discipline, has displayed remarkable resilience and has comeback strongly with the unlocking of the economy,” ACMA President Deepak Jain said.
Going forward, whilst the performance of the industry during the festive season has been heartening, there are indications that the vehicle demand, in the coming months, will be sustained, he added.
Jain further said that despite concerns of another wave of pandemic, the industry is cautiously optimistic about the prospects of the Indian economy and the automotive sector for FY2021-22.
“Companies have mostly recovered and are back to moderate financial health, post the lockdown. Financially healthy and growth focused companies are also actively focusing on capex and acquisition and merger opportunities. While increased visibility and commitment to new program timelines from OEMs is a key industry expectation, at an organizational level, focus on employee productivity and organization structure consolidation will be the key thrust areas,” Jain added.
Hits: 162
