India’s Auto Parts Industry Up By 14.3% To $43.5 Billion In FY 2016-17: ACMA
The Indian auto components industry clocked a turnover of $ 43.5 billion (Rs. 2.92 lakh crore) during financial year 2016-17, up by 14.3% over US$ 39 billion (Rs. 2.55 lakh crore) earned during the corresponding period last year. During FY 2016-17, the aftermarket segment grew by 25.6 % to US$ 8.4 billion (Rs. 56,096 crore) and exports went up by 3.1% to US$ 10.9 billion (Rs. 73,128 crore). Imports decreased by 0.1% to Rs. 90,662 crore last fiscal as against Rs. 90,571 crore in 2015-16, as per the latest data released by the Automotive Component Manufacturers' Association of India (ACMA).
Commenting on the performance of the industry, Rattan Kapur, President, ACMA said, "Despite the challenges of demonetization and uncertainty in the implementation of GST, the vehicle production remained buoyant. In this backdrop, the auto component industry, as well, posted an encouraging performance." On the projected outlook Kapur said, "We believe that a technological transformation of the automotive industry is imminent, which calls upon the component industry to invest in R&D, create IP, acquire and develop relevant technologies at a much faster pace to remain relevant for future needs."
Expressing similar views, Vinnie Mehta, Director General of ACMA added, “At this juncture, the industry is preparing to graduate from BS-IV to BS-VI (emission norms) by 2020. Leapfrogging a generation of technology in just three years not only calls for sizeable investments for technology acquisition and absorption, but also for skilling of people. Therefore, a long-term stable, technology-agnostic roadmap for the automotive industry driven by a sound regulatory framework is the need of the hour. That will ensure that the industry can invest for sustainable growth and development in line with the aspirations of all stakeholders.”
Nearly 35% of the total export revenue came from Europe, while Asia and North America accounted for 27 % and 26 % respectively, thus registering a CAGR of 11 % over a period of six years. The industry CAGR went up by 7% over the last six years. Imports from Asia increased by 2.4 % but reduced from North America and Europe by 14.6 % and 7.3 % respectively.
