Auto component industry: The auto component industry business has witnessed a 10 per cent decline in the first half of the current financial year, which has had a direct impact on jobs. Car Review online
New Delhi: The auto component industry says its total business has fallen by more than 10 percent in the first half of the current financial year. This is the biggest drop in its total business. At the same time, about one lakh temporary jobs have been lost in the industry till July.
Automotive Component Manufacturers’ Association (EXMA), an association of component manufacturers, said here on Friday that the auto component industry generated a total turnover of Rs 1.79 lakh crore in the first half of the current financial year. This is 10.1 percent less than the total turnover of the industry at Rs 1.99 lakh crore in the same period of the previous financial year.
According to Acma, the decline in the vehicle market has also had an impact on the components manufacturing units. During this period, the softening of business has also affected the investment and the industry has lost investment of up to two billion dollars. However, exports of component industry have increased marginally during this period. It has increased by 2.7 percent to Rs 51,397 crore. At the same time, in the component business category used for service after the sale of vehicles, it has increased by four percent to Rs 35,096 crore. Imports of auto components declined by 6.7 percent to Rs 57,574 crore during the period.
Deepak Jain, president of Ecma, told reporters here, ‘The automobile industry has been experiencing a slowdown for a long time. There has been a decline in car sales in all categories for the last one year. He said that the growth of the auto component industry depends on the auto industry and in the current period there has been a decline of 15 to 20 per cent in vehicle production, which has also had an adverse impact on the auto component industry.
Acma said that earlier there was a big decline in the business of auto component industry ie two percent during 2013-14. Jain said that from October last year to July this year a large number of people have been fired. According to him, about one lakh temporary workers have been laid off during this period.
Jain said that the vehicle industry has invested a total of 80 to 90 thousand crores for the transition from BS-4 to BS-6. In this, the auto component sector has invested 30 to 35 thousand crores. He said that at present 60 percent of vehicle parts are charged at 18 percent and 40 percent at 28 percent GST. This gives an opportunity for the number two job to flourish in the after sales service market.