This is for the second year in a row that the industry’s turnover mov-ed to the negative zone
Pune: The Automotive Compon-ent Manufacturers Asso-ciation of India (Acma), on Tuesday said the turnover of the automotive component industry fell 3 per cent year-on-year at Rs 3.4 lakh crore ($45.9 billion) in FY21.
This is for the second year in a row that the industry’s turnover mov-ed to the negative zone.
“While the first quarter of FY21 was a complete washout, the industry regained significant ground in the second quarter onwards. The component industry, in tandem, posted a subdued performance in FY21,” Vinnie Mehta, director general at Acma, said.
He said the vehicle industry in India witnessed two successive years of de-growth of 14.6 per cent in FY19-20 and thereafter of 13.6 per cent in FY20-21.
The decline from FY20 to FY21 was due to the Covid-19 impact. Two back to back waves of Covid-19, sharp rise in commodity prices and semiconductor shortage in 2019-2020 wiped out the industry's revenue.
The Acma said exports of auto components also dropped 8 per cent to Rs 0.98 lakh crore ($13.3 billion) in 2020-21 from Rs 1.02 lakh crore ($14.5 billion) in 2019-29.
Europe, accounting for 32 per cent of exports, saw a decline of 4 per cent, while North America and Asia, accounting for 30 per cent and 26 per cent, respectively, remained stable.
Component imports fell 11 per cent to Rs 1.02 lakh crore ($13.8 billion) in 2020-21 from Rs 1.09 lakh crore ($15.4 billion) in 2019-20. Asia accounted for 66 per cent of imports followed by Europe and North America at 13 per cent and 17 per cent respectively. Imports from Asia declined by 9 per cent, while those from Europe by 13 per cent and from North America by 17 per cent.
The aftermarket turnover dropped 7 per cent to Rs 64,524 crore ($9.8 billion.)