The total turnover of the automobile component manufacturing companies in India has declined by 11.7 percent to Rs 3.49 lakh crore in financial year 2019-2020 majorly due to prolonged slowdown in the auto sector and the outbreak of coronavirus.
In FY’19, the revenue of the sector grew by 14.5 percent to Rs 3.95 lakh crore.
According to Deepak Jain, President, ACMA, subdued vehicle demand, investments made for transition from BS-IV to BS-VI, liquidity crunch, lack of a clarity on policy for electrification of vehicles and slowdown in key export markets, among others, had an adverse impact on the performance of the components sector in India as also on its expansion plans. All these factors pulled back the domestic auto component industry by almost two years, Jain noted.
Speaking about the current situation, Jain elaborated, “The auto component industry has displayed remarkable resilience in wake of the lockdown; the industry faced acute challenges on the front of working capital, production and dysfunctional logistics.”
Source: TOI
