Download Free PDF

  • HOME
  • ABOUT US
  • SUBSCRIBE
  • ADVERTISE
  • E-NEWSLETTER
  • CONTACT US
91-22-24193000
Subscriber@ASAPPinfoGLOBAL.com
Automotive Products Finder
  • BEST STORIES
  • INTERVIEWS
  • NEWS UPDATES
  • PRODUCTS
  • EVENTS
  • ARCHIVES
Automotive Product Finder Magazine | Automobile Industry Update: FY20

Automobile Industry Update: FY20

Indian Auto Component Industry – Review FY19 & Outlook
Leading Chinese EV maker selects BorgWarner for sourcing eMotors

Industry News  /   April

In FY20, the industry sales experienced a sharp decline of 14.8 per cent y-o-y vis-à-vis a growth of about 6.4 per cent during FY19 led by factors such as increased insurance costs, uneven monsoon, high ownership costs, curtailed lending by the NBFC segment, weak festival demand, weak consumer sentiments and the spread of Covid-19 in the country. Additionally, due to the compliance of the emission standards and safety norms, cost of manufacturing has increased. Some effects on the CV segment are also expected due to allowance of load bearing capacity increase by 20-25 per cent.

On the auto components side, India’s maximum dependence on imports especially for the two-wheeler and passenger vehicle industry component wise is in steering and braking systems, engine parts, alloy wheels and lighting systems. Also, most of the OEMs are dependent on Chinese supply chains for the BS-IV as well as BS-VI components such as fuel injection pumps. In the current scenario, with the overall slowdown in the Indian economy, shifting to other alternate countries (such as Germany, Japan, Korea) for supply may not be feasible in terms of both cost and time.

Due to the Covid-19 pandemic and on the request of SIAM (Society of Indian Automobile Manufacturers) and ACMA (Auto Component Manufacturers Association of India), most of the OEMs and auto component players have initiated work from home for its non-manufacturing work staff and have announced temporary shutdown of manufacturing units and put local productions on hold. Also, the 2 main auto clusters in India, Pune and Gurgaon-Dharuhera have already been completely shut.

Overall exports of auto showed a marginal growth of about 3.9 per cent y-o-y in FY20 vis-à-vis a double-digit growth of about 14.1 per cent in FY19. Exports stood at about 18.3 per cent of the total sales during the year. Commercial vehicles segment with the lowest base in total auto exports, witnessed the sharpest decline of over 39 per cent while exports of passenger vehicles witnessed a negligible growth of about 0.3 per cent y-o-y. Exports of two & three wheelers segment increased by over 4.5 per cent y-o-y during the period.

Read the complete report by CARE Ratings here

Tags Cloud
  • CARE Rating Article
  • CARE Ratings
  • APF
  • NBFC Segment
  • Auto Components
  • Auto Component Manufacturers Association Of India
  • Passenger Vehicles
Advertise Here [600 W x 90 H pixels]

Comments

Loading ...
Social
Become a fan
Like
Follow us
Follow
RSS
Subscribers
Popular posts
Leading Chinese EV maker selects BorgWarner for sourcing eMotors
Leading Chinese EV maker selects BorgWarner for sourcing eMotors
News,
May 2022
India eyes Bangladesh as a major auto hub
India eyes Bangladesh as a major auto hub
News,
Apr 2022
Denso, USJC tie-up to manufacture semiconductors
Denso, USJC tie-up to manufacture semiconductors
News,
Apr 2022
Most commented
0 Leading Chinese EV maker selects BorgWarner for sourcing eMotors
0 Denso, USJC tie-up to manufacture semiconductors
0 Extended lockdown in China may affect the domestic auto industry
Latest Comments
1
None says:
None
2
None says:
None

Posts Categories

  • BEST STORIES
  • INTERVIEWS
  • NEWS UPDATES
  • PRODUCTS
  • EVENTS
  • ARCHIVES

Twitter Feeds

Contact Us

ASAPP Info Global Services Pvt Ltd.

A-303, Navbharat Estates,
Zakaria Bunder Road,
Sewri (West),
Mumbai - 400 015,
Maharashtra, India


Tel : 91-22-24193000, Fax : 91-22-24175734
Email : Subscriber@ASAPPinfoGLOBAL.com
Website: www.ASAPPinfoGLOBAL.com
  • HOME
  • ABOUT US
  • SUBSCRIBE
  • ADVERTISE
  • E-NEWSLETTER
  • PARTNERS
  • CONTACT US

© COPYRIGHT 2019 ASAPP Info Global Services Pvt Ltd. All Right Reserved.