COVID-19 eats away auto parts turnover as it slips by 34% from March

COVID-19 eats away auto parts turnover as it slips by 34% from March
PIXABAY
New Delhi, The Automotive Component Manufacturers Association of India on Wednesday reported a de-growth of 34% in industry's turnover during April to September 2020 period on a year-on-year basis.

Accordingly, the turnover of the automotive component industry stood at ₹1.19 lakh crore (USD 15.9 billion) for the period April 2020 to September 2020.

"The auto industry witnessed a downturn in FY2019-20, the situation further aggravated with the outbreak of the pandemic and the lockdown," said Vinnie Mehta, Director General, ACMA.

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"While the first quarter for FY20-21 was significantly stressed, however with unlocking of the economy, the sales of vehicles witnessed improvement, month-on-month, in the second quarter."

However, for the first time ever, the industry witnessed a trade surplus with auto component exports at ₹39,003 crore ($5.2 billion) and imports at ₹37,710 crore ($5 billion); both exports and imports declined by 23.6% and 32.7%, respectively, he said.

"The aftermarket, estimated at ₹31,116 crore, also witnessed de-growth of 15%. Component sales to OEMs in the domestic market contracted the most to ₹87,120 crore (USD 11.6 billion), declining 42%."

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