Indian Auto Component Industry clocks turnover of Rs. 3.49 lakh crore in FY 19-20, de-grows by 11.7%

The Indian auto component industry has clocked a turnover of Rs. 3.49 lakh crore (USD 49.2 billion) for the period April 2019 to March 2020, registering a de-growth of 11.7 per cent over the previous year, reported Automotive Component Manufacturers Association of India (ACMA), while sharing results of the auto component industry performance review with the media.

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Commenting on the performance of the auto component industry in India, Vinnie Mehta, Director General, ACMA said, “The overall vehicle industry witnessed a severe downturn in 2019-20 that saw its sales slump by 18%. The component industry, in tandem, posted a subdued performance with de-growth of 11.7 per cent over the year, registering a turnover of Rs.3.49 lakh crore (USD 49.2 billion). Auto Component Aftermarket at Rs.69,381 crore (USD 9.8 billion) remained stable while sales to OEMs in the domestic market at Rs.2.87 lakh crore (USD 40.5 billion) declined 17 per cent. Both Imports and exports declined by 11.4 per cent and 3.2 per cent respectively; Imports stood at Rs. 1.09 lakh crore (USD 15.4 billion), while exports at Rs. 1.02 lakh crore (USD 14.5 billion)”.

Sharing his insights, Deepak Jain, President, ACMA said, “The automotive industry faced a prolonged slowdown in FY 2019-20 with vehicle sales in all segments plummeting significantly. Subdued vehicle demand, investments made for transition from BSIV to BSVI, liquidity crunch, lack of a clarity on policy for electrification of vehicles and slow-down in key export markets, among others, had an adverse impact on the performance of the components sector in India as also on its expansion plans”.