The Indian auto
component industry in fiscal 2020-21 would have a decline in
growth in the range of 10%-12%, according to Deepak Jain, President, Auto
Component Manufacturers Association (ACMA).
In 2019-2020, the auto component maker fared better on the strength of robust
demand from the tractor industry and good business from exports and
aftermarket. The situation is complex in a post-second wave as it has impacted
the rural markets.
Last year India
exported USD 14.5 billion, 29% of the production, to over 160 countries.
However, the share in the global trade in auto
components is minuscule, only 1.3% of the USD 1.3 trillion, and
there is only one Indian company featuring in the global top 10 component
Jain said that, they have not yet prepared
the actual numbers but expect that the auto parts industry has performed better
than the vehicle industry and it has degrown less than the vehicle industry in
FY21. He added that the challenge will be aggravated as demand recovery will
not be as quick as in the previous year and the supply side constraints have
become more complex because of the regional lockdowns. The migration of the
workforce also will continue to affect the sector.
ACMA is the apex body representing auto parts
makers and more than 65% of ACMA members are SMEs.