Indian Auto Component Industry de-grows 11.7% in FY 2019-20, clocks turnover of Rs 3.49 lakh crore

New Delhi: Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s Auto Component manufacturing industry on Wednesday announced that the turnover of the automotive component industry stood at Rs. 3.49 lakh crore (USD 49.2 billion) for the period April 2019 to March 2020, registering a de-growth of 11.7 per cent over the previous year

In its Industry Performance Review for the fiscal year 2019-20, ACMA said 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 for 30 per cent and 27 per cent respectively remained stable.

Slowdown in the domestic market also reflected on imports of component into India. Component imports fell by 11.4 per cent to Rs.1.09 lakh crore (USD 15.4 billion) in 2019-20 from Rs.1.23 lakh crore (USD 17.7 billion) in 2018-19. Asia accounted for 65 per cent of imports followed by Europe and North America at 26 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 cent, it added.

The aftermarket in FY 2019-20 remained 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 per cent over the previous year, the industry body said.

 “The overall vehicle industry witnessed a severe downturn in 2019-20 that saw its sales slump by 18%,” Vinnie Mehta, Director General, ACMA said.

Deepak 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”.