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Indian Auto Component Industry hit by Auto Industry Slowdown

Auto News - Published on Fri, 13 Dec 2019

Image Source: Indian Auto Component Industry
India’s Association of Component Manufacturers Association said that the revenue of the Indian component makers declined by over 10 per cent during April -September as the free fall of auto sales in the first half of current fiscal underscored the weakness in the auto ancillary industry. It said “The revenue of the domestic component industry stood at INR 1.79 lakh crore in HY FY'20 as compared to INR 2 lakh crore during the same period a year ago. Direct sales of components to the OEMs stood at INR 1.5 lakh during the first half of the current fiscal, down 15.2 per cent, as against INR 1.8 lakh crore in the corresponding period last year.”

ACMA President Mr Deepak Jain said "Vehicle sales in all segments have continued to plummet for the last one year. Considering the auto component industry grows on the back of the vehicle industry, a current 15 to 20 per cent cut in vehicle production has adversely impacted the auto components industry performance and investments. Bucking the negative trend, exports registered marginal growth of 2.7 per cent at INR 51,397 crore during the first half of the current fiscal.”

On the employment front, ACMA pointed out that the industry has witnessed job loss of around one-lakh temporary workers between October 2018 and July 2019.

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Posted By : Arun Huidrom on Fri, 13 Dec 2019
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