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New Delhi, 16-12-2020: Automotive Component Manufacturers Association of India (ACMA), the top body of India’s auto component producing industry has released the findings of its Industry Performance Review for the first six months of the current fiscal year of 2020-21. The industry recorded a negative growth of 34 per cent this time compared to the same period during the last fiscal year. In terms of the total turnover from April 2020 to September 2020, the amount stood at Rs.1.19 lakh crore (USD 15.9 billion).
Sharing his thoughts on the performance of the auto component industry in India, Vinnie Mehta, Director General, ACMA said, that the already fragile condition of the industry further aggravated by the outbreak of the COVID-19 pandemic and lockdowns in various parts of the country as well as the rest of the world. He further added although the Q1 of FY 20-21 saw a massive slump in business, the situation improved with the unlocking of the economy and a good sales of vehicles in Q2. Also, for the first time, the industry registered a trade surplus with Auto Component exports exceeding the imports in the second half of FY 20-21. He also talked about the massive contraction of component sales to OEMs in the domestic market. The sales stood at Rs.87,120 crore (USD 11.6 billion), a massive decline of 42 per cent.
Also sharing his views on the performance of the auto component industry was Deepak Jain, President, ACMA. He said, in the wake of the pandemic, the industry faced unprecedented challenges; however, due to flexibility, financial discipline, and agility, it has displayed a striking recovery. He also expressed his gratitude to the OEMs for their support and the timely intervention by the government, especially concerning the supply challenges that the industry was facing. He lauded the performance of the industry during the festive season of Diwali. He also said that they are hopeful that the Government would consider PLI or appropriate manufacturing schemes for auto-electronics and xEV components as well. Mr Jain also pointed out that despite concerns of another wave of the pandemic, the industry is cautiously optimistic about the prospects of the Indian economy and the automotive sector for FY 2021-22.Â
Some of the major findings of the review for H1 2020-21 are:
Exports: The overall exports of auto components decreased by over 23%. In H1 2019-20, the amount was Rs 51,028 crore (USD 7.4 billion), while in H1 2020-21 it stood at Rs.39,003 crore (USD 5.2 billion). Europe, which accounts for about 31 per cent of exports, witnessed a sharp decline of 28%. Asia that accounts for 29 per cent of exports, saw a decline of 30%, while North America that accounts for 30 per cent of exports, witnessed a decline of 28 per cent.
Imports: Similar to a sharp decline in exports, the imports of auto components too saw a reduction of over 32 per cent. In H1 2019-2020, the amount was Rs.56,066 crore (USD 8.2 billion). While in H1 2020-2021 it stood at Rs.37,710 crore (USD 5.0 billion). Imports from various geographies saw a massive decline. Asia accounts for a whopping 60 per cent of the total import volume.
Aftermarket: The aftermarket segment too saw a decline of 15 per cent. The total amount was Rs.36,607 crore (USD 5.3 billion) in H1 2019-20, while in H1 2020-2021 it stood at Rs 31,116 crore (USD 4.1 billion).
About Automotive Component Manufacturers Association of India (ACMA):
It is the topmost body that represents the interests of the Indian Auto Component Industry. Its membership is extended to over 850 manufacturers, who contribute over 90% of the auto component industry’s turnover in the organized sector. ACMA is an ISO 9001:2015 Certified Association.
