Sunday, June 4Welcome

India’s Auto Parts Exports Strong Despite Economic Slowdown

Posted by Manav Kapur, Executive Director, Steelbird International

A common trend in the Indian auto parts industry is increasing imports and decreasing exports, resulting in trade deficits. Fiscal year 2021-22, however, was an exception, seeing his significant $700 million trade surplus for the first time in the industry. The auto parts industry has seen a staggering growth rate of 23 per cent and in fiscal year 2020 he posted a record turnover of Rs 4.2 trillion. Primarily underpinned by unprecedented performance in export and aftermarket.

According to the Auto Parts Manufacturers Association of India (ACMA), total exports increased by 43% during the financial year, while imports increased by only 33%. Major items exported during the same period included drive transmissions and steering, engine components, bodies, chassis, suspensions and brakes. The auto parts aftermarket recorded a very high turnover of SEK 74,203 in 2021-22, with year-on-year growth of 15%.

Manav Kapur, Executive Director, Steelbird International
Manav Kapur, Executive Director, Steelbird International

The export surge comes at a time when most economists and experts in India were predicting a partial recession and an uneven recovery ahead. The government has taken many steps to revive the economy, but experts still see the recovery as uneven. There are also several factors.

The Indian auto parts industry primarily caters to Original Equipment Manufacturers (OEMs) within the industry as well as Tier 1 suppliers in large external markets. Nearly two-thirds of exports by auto parts manufacturers go to Europe and North America. The government has introduced a number of changes to make its policies more sustainable to boost exports, which is one of the main reasons behind the steady recovery of the auto parts industry after the pandemic. is.

Also read: Top 5 Royal Enfield bikes coming to India in 2023: New Bullet, Himalayan 450 and more

High GDP growth in 2022-23, strong demand in domestic car market, surge in exports, focus on clean and new technologies, state electric vehicle policy and government’s Production Linked Incentive (PLI) scheme are the main drivers It has become. In the exponential growth of the Indian auto parts industry. Despite government and industry players’ renewed focus on the transition to clean mobility, sales of auto parts in the electric vehicle sector stood at INR 352 billion in fiscal year 2021-22, surpassing the number of vehicles sold in fiscal year 2021. Only 1% of the total parts. fiscal year.

However, while receiving government support, industry insiders have warned against chip shortages, high costs of raw materials and logistics, availability of shipping containers for auto parts, rising inflation, rising fuel prices, and rising insurance premiums. still grappling with major challenges in Growth in the motorcycle segment and high GST rates on auto parts were below expectations.

Disclaimer: The views and opinions expressed in this article are solely those of the original author. These views and opinions do not represent the views or opinions of Indian Express Group or its employees.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *