Auto part firms post robust growth in Q1

By: |
Chennai | Published: August 22, 2018 3:45:26 AM

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.

auto, auto partBetween April and June 2018, US remained the topmost importer of the Indian auto components/parts from India, aggregating to 0 million, an annualised growth of 23.80%

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.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition