Amidst India's concerns over the impact of tariff war amongst the major economies of the world on the export front, the Indian automobile components industry has posted a robust growth between 24%-53% in shipments to top major importers during the first quarter of the current fiscal.
Amidst India’s concerns over the impact of tariff war amongst the major economies of the world on the export front, the Indian automobile components industry has posted a robust growth between 24%-53% in shipments to top major importers during the first quarter of the current fiscal.
Between April and June 2018, US remained the topmost importer of the Indian auto components/parts from India, aggregating to $290 million, an annualised growth of 23.80%. Turkey was at the second position with aggregated auto component imports of about $100 million from India with a growth of 28.36%, said a release from EEPC.
Bangladesh, Brazil and Germany were the other major importers of Indian auto components with aggregate shipments of $80 million, $72 million and $61 million, respectively for the period. While Bangladesh showed the maximum growth of over 53% during April-June this fiscal over FY 2017-18, the US was far ahead in total value, EEPC pointed out.
According to ACMA, the automotive component industry that contributes 2.3% to India’s GDP and has a share of 4% in India’s exports, stood at `3.45 lakh crore ($51.2 billion) for the period April 2017 to March 2018, registering a growth of 18.3% over the previous year. Further, exports grew 23.9% in FY 2017-18 to Rs 90,571 crore ($13.5 billion). Europe accounted for 34% of exports followed by North America and Asia, with 28% and 25% share respectively. The key export items included drive transmission & steering, engine components, body/chassis, suspension & braking.
“We had seen some concerns amongst the stock investors as regards Indian auto exporters after tariff and counter-tariff issues cropped up among two major economies, but performance of our auto component exporters has been quite good. Close to 24% growth in auto components exports to the US does not reflect any trade war impact,” EEPC India chairman Ravi Sehgal said in a statement. Though low in scale, Indian auto component makers have found an expanding markets in Romania, Japan, Vietnam and Colombia.
“This shows a quality of enterprise on the part of our exporters,” said chairman of the apex engineering export organisation. Cumulative engineering exports during the first quarter (April – June) of 2018-19 stood at $20.47 billion as against $17.65 billion during the same quarter last fiscal, recording 15.96% growth year-on-year, EEPC added.