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The auto aspect enterprise has recorded a revenue decline of 11.7 per cent at Rs. 3.49 lakh crore in the ultimate financial yr.
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The auto aspect enterprise has recorded a revenue decline of 11.7 per cent in FY2020
Automotive Component Manufacturers Association of India (ACMA), has launched the effectivity overview of FY 2020. The auto aspect enterprise in India recorded a revenue decline of 11.7 per cent at ₹ 3.49 lakh crore in the ultimate financial yr. That said, the aftermarket in FY2020 remained regular no matter a downturn in the auto enterprise at ₹ 69.381 crore, witnessing a marginal growth of two.eight per cent over the sooner yr. In the an identical financial yr, the final automobile enterprise witnessed a downturn of 18 per cent.
Also Read: Auto Component Sector Likely To See Job Cuts If There’s Weak Demand: ACMA
Exports of auto components witnessed a de-growth of three.2 per cent to ₹ 1.02 lakh crore in the an identical interval as in comparability with Rs 1.06 lakh crore exported a yr in the previous. European markets accounting for 30 per cent of exports, observed a decline of 11 p.c, whereas North America and Asia, accounting for 30 per cent and 27 per cent respectively reported flat numbers. Component imports fell by 11.4 per cent to ₹ 1.09 lakh crore in FY20 from ₹ 1.23 lakh crore recorded a yr in the previous. Asia accounted for 65 per cent of imports (down by 7 per cent), adopted by Europe at 26 per cent (down by 22 per cent) and North America eight per cent (down by 17 per cent).
Also Read: Congestion Of Auto Components Imported From China May Lead To Production Delays
The prevailing coronavirus catastrophe has led to a 45 days prolonged full lockdown adopted by an intense slowdown in the market. It has taken a toll on the auto aspect enterprise as correctly and ACMA is anticipated it to impression revenues even extra this financial yr.
Speaking regarding the current state of affairs, Deepak Jain, President – ACMA said, “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. However, with unlocking of economy, growth seems to be returning to the industry with uptick in vehicle consumption especially in the two-wheelers, passenger vehicles and the tractor segments, although sales of commercial vehicles continue to be challenged. The component industry’s performance is expected to return to pre-COVID levels by the festive season should the ramp-up be not stymied by lockdowns in manufacturing zones and lack of availability of manpower. Going forward, to allow for uninterrupted production in the automotive value chain, despite local lockdowns, ACMA has recommended to the Government to accord ‘continuous production industry’ status to the automotive industry”.
Also Read: Auto Component Makers Gearing up To Resume Operations
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ACMA continues to recommend a uniform 18 per cent GST cost all through the auto aspect sector. At present 60 per cent of the auto components entice 18 per cent GST cost, whereas the remaining 40 per cent, majority of which are two-wheelers and tractor components, entice 28 per cent. A uniform tax cost will give aspect makers some cushion to take in the impression of the downturn.
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