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The auto component industry, for the first time ever, has witnessed a trade surplus, with exports at ₹39,003 crore ($5.2 billion) in the first half of FY21, said the Automotive Component Manufacturers Association of India (ACMA) on Wednesday.
Imports
Imports during the period was recorded at ₹37,710 crore ($5 billion). However, both exports and imports declined by 23.6 per cent and 32.7 per cent, respectively, during the period, said ACMA in its ‘Industry Performance Review’ for the first half of FY21.
Europe, accounting for 31 per cent of exports, saw a decline of 28 per cent, while North America and Asia, accounting for 30 per cent and 29 per cent, respectively, also registered decline of 28 and 30 per cent, it said.
Exports
The exports of auto components was recorded at ₹51,028 crore ($7.4 billion) in the corresponding period of FY20.
Overall, there was a subdued performance with de-growth of 34 per cent over the first half (April-September) of the fiscal, registering a turnover of ₹1.19-lakh crore ($15.9 billion), said ACMA, adding that this will lead to a double-digit decline in growth this year.
“In the backdrop of the pandemic and the lockdown, the automotive industry faced unprecedented challenges in the first-half of fiscal year 2020-21. The auto component industry, through agility, flexibility and financial discipline, has displayed remarkable resilience and has come back strongly with the unlocking of the economy,” said Deepak Jain, President, ACMA.
Going forward, while the performance of the industry during the festival season has been heartening, there are indications that the vehicle demand will be sustained in the coming months, he said.
“This, together with the increased focus by the auto industry on deep-localisation and the recent announcement of PLI schemes for the automotive sector and cell/ battery manufacturing by the government, augur well towards making the auto-component industry a self-reliant one,” said Jain.
He added that the industry was also hopeful that the government would consider PLI or appropriate manufacturing schemes for auto-electronics and EV components as well.
The aftermarket, estimated at ₹31,116 crore, also witnessed de-growth of 15 per cent. Component sales to original equipment manufacturers in the domestic market contracted the most to ₹87,120 crore ($11.6 billion), declining 42 per cent,” said Vinnie Mehta, Director General, ACMA.
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