The turnover of the automotive component industry stood at ₹3.40-lakh crore ($45.9 billion) for the period April 2020 to March 2021, registering a de-growth of 3 per cent over the previous year.
The Indian auto component sales to original equipment manufacturers (OEMs), also declined by three per cent in the domestic market to ₹2.79-lakh crore ($37.7 billion) as compared to the previous year, Automotive Component Manufacturers Association of India (ACMA), said on Tuesday in its Industry Performance Review for the FY2020-21.
Sales to OEMs in the first half of 2021 had declined by 31 per cent over the first-half of the previous year. “However, it witnessed a healthy recovery in second half 2021,” it said.
The apex body representing India’s auto component manufacturing industry said that the exports of auto components also witnessed degrowth of 8 per cent to ₹98,000 crore ($13.3 billion) in 2020-21 from ₹1.02-lakh crore ($14.5 billion) in 2019-20.
Europe accounting for 32 per cent of exports, saw a decline of 4 per cent, while the US and Asia, accounting for 30 per cent and 26 per cent declined 7 per cent and 8 per cent, respectively. The key export items included drive transmission and steering, engine components, body/ chassis, suspension and braking.
Slowdown in the domestic market also reflected on imports of component into India, the ACMA report said, adding that component imports fell by 11 per cent to ₹1.02-lakh crore ($13.8 billion) in 2020-21 from ₹1.09-lakh crore ($15.4 billion) in 2019-20.
In the aftermarket segment, while the two-wheelers and passenger vehicles witnessed strong recovery, revival in the commercial vehicles’ aftermarket was less than expected – leading to an overall decline of 7 per cent.
The turnover of the aftermarket in FY2020-21 stood at ₹64,524 crore ($8.7 billion) compared to ₹69.381 crore ($9.8 billion) in the previous year, it said.
“In this environment of volatility, despite disruption of production in supply chain, the industry displayed remarkable resilience and evolved in a spirit of collaboration. Whilst the OEMs gave consistent direction and visibility, the component industry supported well in ensuring smooth ramp-up and business continuity,” Deepak Jain, President, ACMA said.
The automotive value-chain faced significant disruptions in FY2020-21. The nationwide lock-down in wake of the pandemic, one of the severest in the world, put the entire supply chain in a disarray, he said.
“While the vehicle sales and production improved quarter-on-quarter from the second quarter of FY2020-21 onwards, the first quarter of FY2021-22 however saw another round of disruptions due to the second wave of the pandemic. While this wave was a much severe humanitarian crisis, the lockdowns, however, were regional, in line with the government’s ethos of ‘lives and livelihoods’ resulting in lesser adverse impact on economy and production,” he added.