COVID-19 impact: Auto parts industry witnessed a downturn of 34 per cent
New Delhi: The Automotive Component Manufacturers Association of India on Wednesday reported a de-growth of 34 per cent in industry's turnover, during the first and second quarter of FY 20-21 that is April to September 2020 period on a year-on-year basis.
Accordingly, the turnover of the automotive component industry stood at Rs 1.19 lakh crore (USD 15.9 billion) for the period of April 2020 to September 2020.
Vinnie Mehta, Director General, ACMA, said, "The auto industry witnessed a downturn in FY2019-20, the situation further aggravated with the outbreak of the pandemic and the lockdown."
"While the first quarter for FY20-21 was significantly stressed, however with the unlocking of the economy, the sales of vehicles witnessed an improvement, month-on-month, in the second quarter."
However, for the first time ever, the industry witnessed a trade surplus with auto component exports at Rs 39,003 crore ($5.2 billion) and imports at Rs 37,710 crore ($5 billion); this was due to declining in both exports and imports by 23.6 per cent and 32.7 per cent, respectively, he said.
"The aftermarket, estimated at Rs 31,116 crore, also witnessed de-growth of 15 per cent. Component sales to OEMs in the domestic market contracted the most to Rs 87,120 crore (USD 11.6 billion), declining 42 per cent."