ACMA, Auto News, ET Auto
New Delhi: The Automotive Component Manufacturers Association of India (ACMA), the umbrella body representing the Indian automotive component manufacturing industry, announced on Tuesday that the automotive components industry’s turnover has increased. amounted to 3.4 lakh crore INR (45.9 billion USD) for the period April 2020 to March 2021, registering a decrease of 3% from the previous year. It is for the second consecutive year that the turnover of the industry goes into negative zone.
The decline from FY20 to FY21 is fairly easy to understand. Two consecutive waves of COVID-19, a sharp rise in commodity prices and a semiconductor shortage in 2019-2020 have wiped out the industry’s revenue.
In its review of industry performance for fiscal year 2020-21, ACMA said exports of automotive components fell 8% to INR 0.98 crore lakh (USD 13.3 billion) in 2020-21 versus INR 1.02 crore (USD 14.5 billion) in 2019-29. Europe, accounting for 32% of exports, saw a decline of 4%, while North America and Asia, accounting for 30% and 26% respectively, remained stable.
The slowdown in the domestic market was also reflected in component imports into India. Component imports fell 11% to INR 1.02 lakh crore (USD 13.8 billion) in 2020-21 from INR 1.09 lakh crore (USD 15.4 billion) in 2019-20. Asia accounted for 66% of imports, followed by Europe and North America with 13% and 17% respectively. Imports from Asia fell 9%, while those from Europe by 13% and North America by 17%, he added.
The aftermarket in fiscal year 2020-21 also fell due to the poor performance of the CV industry. Secondary market revenue was INR 64,524 crore (US $ 9.8 billion), down 7% from the previous year, the industry body said.
“While the first quarter of fiscal 21 was a complete failure, the industry gained ground from the second quarter. The components industry, in tandem, showed a moderate performance in FY21 with a 3% decline from the previous year, recording sales of 3.4 lakh crore (45, $ 9 billion), ”said Vinnie Mehta, CEO of ACMA.
According to Deepak Jain, president of ACMA, the automotive value chain faced significant disruption in FY21.
“The nationwide lockdown in the wake of the pandemic, one of the most severe in the world, has left the entire supply chain in disarray. The whole sector took a considerable time to stabilize again after the progressive unblocking of the economy. While vehicle sales and production improved quarter over quarter from the second quarter of FY20-21, the first quarter of FY21-22 again faced a new round of disruptions due to the second wave of the pandemic. Although this wave was a very serious humanitarian crisis, the blockages were nonetheless regional, in line with the government’s philosophy of “lives and livelihoods”, resulting in less negative impact on the economy and production, “he said. -he adds.
Elaborating on the headwinds facing the industry, Jain said as the economy gradually returns to normal and demand for vehicles picks up, we are cautiously optimistic about the industry’s performance for this year.
While vehicle sales and production improved quarter over quarter from the second quarter of FY20-21, the first quarter of FY21-22 again faced a new round of disruptions due to the second wave of the pandemic.Deepak Jain, President, ACMA
“The challenges on the semiconductor availability front, escalating prices as well as the availability of raw materials, the challenges on the logistics front, including the unavailability and high prices of containers, among others , continue to hamper a smooth recovery. We are also cautious. a third wave of the pandemic and hope that the current upturn in demand will be sustained. We are optimistic that the lessons learned in the management of the first two will be very useful for us in managing the third as well, ”said the President of ACMA. Explain.
Politically, ACMA said it was grateful to the government for the recent announcement of the Production Linked Incentive Program (PLI) for ACC battery storage, which is a good step towards creating ” a holistic ecosystem for the manufacture and maintenance of electric mobility. in the countryside. That aside, while the PLI program for the automotive and automotive components industry has been announced, the industry is awaiting its finer details.
The PLI Automotive and Automotive Components program is expected to create an export competitive automotive components industry and also boost its localization. The industry also wants an early announcement of the details of the Remission of Duties and Taxes on Export Products (RODEPT) program which will reimburse embedded taxes and duties, previously unrecoverable, in order to make the price of component exports competitive.