Automotive Component Manufacturers Association of India (ACMA) has announced the numbers for the fiscal year 2019-20. The apex body stated that the turnover of the automotive component industry stood at Rs. 3.49 lakh crore for the period April 2019 to March 2020 and hence, a de-growth of 11.7 percent over the previous year was reported. The sales to OEMs have declined by 17% while imports see a drop of 11.4%. The exports, on the other hand, also saw a decline of 3.2%. The auto component aftermarket at Rs 69,381 crore remained stable. ACMA says that it continues to support the vehicle industry in their request to the government for enhancing the vehicle demand in India through the reduction in GST on all vehicle categories to 18 percent and the introduction of an incentive-based scrappage policy.
For the components sector, ACMA recommends a uniform 18 percent GST rate across the auto component sector. Currently, 60 percent of auto components attract 18 percent GST rate while the majority of the rest which are two-wheelers and tractor components, attract 28 percent. The body said that the latter high rate has led to flourishing grey operations in the aftermarket and a benign rate of 18 percent will not only ensure better compliance but will also ensure a larger tax base.
Exports of auto components witnessed a degrowth of 3.2 percent to Rs.1.02 lakh crore in 2019-20 from Rs 1.06 lakh crore (USD 15.2 billion) in 2018-19. Europe accounting for 30 percent of exports, saw a decline of 11 percent, while North America and Asia, accounting for 30 percent and 27 percent respectively remained stable. The key export items included bits like drive transmission & steering, engine components, Body/Chasis, Suspension & Braking etc.
Talking of imports, the slowdown in the domestic market also reflected on imports of the components into India. The numbers fell by 11.4 percent to Rs.1.09 lakh crore in 2019-20 from Rs.1.23 lakh crore in 2018-19. Asia accounted for 65 percent of imports followed by Europe and North America that stood at 26 percent and 8 percent respectively. While imports from Asia declined by 7 percent, those from Europe fell by 22 percent and North America by 17 percent. The aftermarket in FY 2019-20 remained stable despite a downturn in the auto industry. The turnover of the aftermarket stood at Rs 69.381 crore that showed a marginal growth by 2.8 percent over the previous year.
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