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The Automotive Component Manufacturers Association of India (ACMA) on Wednesday said that for the first time ever, the industry witnessed a trade surplus with auto component exports at ₹39,003 crore ($5.2 billion) and imports 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 first half of this year. In its ‘Industry Performance Review’ for the first half of fiscal 2020-21, ACMA said that the exports of auto components declined from ₹51,028 crore ($7.4 billion) in first half of 2019-20.
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, respectively, it said.
Also read: Auto parts sector sees PLI scheme driving it to global destinations
The apex body representing the auto component manufacturing industry said that the overall turnover of the industry stood at ₹1.19-lakh crore ($15.9 billion) for April to September 2020, registering a de-growth of 34 per cent over the first half of the previous 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 industry, through agility, flexibility and financial discipline, has displayed remarkable resilience and has come back strongly with the unlocking of the economy,” Deepak Jain, President, ACMA, said.
Festival cheer
Going forward, whilst the performance of the industry during the festival season has been heartening, there are indications that the vehicle demand, in the coming months, will be sustained, 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,” Jain said.
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.
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