Indian auto component industry sales declined by 3%

News  /   August

New Delhi

The Automotive Component Manufacturers Association of India (ACMA) has announced its findings on the automotive component industry.

The turnover of the Indian auto component industry is recorded at $45.9 billion for the period April 2020 to March 2021 which means that the industry has shown a de-growth of 3% as compared to last year. According to Vinnie Mehta, Director General, ACMA, the vehicle industry has experienced de-growth for two successive years of 14.6% and 13.6% in FY19 and FY20 respectively. This economic slowdown of FY19-20 is the result of pandemic-led national lockdown which resulted in a decline in vehicle production and consumption.

The sales of auto components in the domestic market were recorded at $37.7 billion while the Aftermarket was recorded at $ 8.7 billion. The two figures have shown a decline of 3% and 7% respectively. The exports and imports stood at $13.3 billion and $13.8 billion, respectively. This caused a reduction in the trade balance to $500 million. The data has been the lowest ever with the exports declining by 8 % and imports by 11 %. 

According to Deepak Jain, President, ACMA, the automotive value-chain has also faced disruptions in FY 20-21 due to the nationwide lockdown. With the unlocking of the economy, vehicle sales and production improved from Q2 onwards. The first quarter was again a setback because of the disruptions caused by the second wave of the pandemic. He also said that this time the lockdown had a lesser adverse impact on the economy and production because the lockdowns were regional this time. Jain added that despite the disruption of production in the supply chain, the auto industry has shown resilience. The component industry ensured smooth ramp-up and business continuity.  ACMA members also took up some relief measures like donating ventilators and concentrators, setting up hospitals and oxygen camps, and contributing towards community service.

ACMA Annual Industry Performance Review for 2020-21 showed the following key findings-

?        Auto Component sales to OEMs were recorded at $37.7 billion showing a decline of 3%.

?        Exports of auto components declined by 8% to $ 13.3 billion.

?        Components imports fell by 11% to $13.8 billion.

?        The revival in the commercial vehicles aftermarket was less while the two-wheelers and passenger vehicles segments of the aftermarket witnessed a good recovery.

Source – Press release of "ACMA"

Image Source: Press release of "ACMA"

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