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Exports of automobile components grew 10 per cent to an all-time high of $11.2 billion in 2014-15 as the country’s overall exports declined.
The growth of automobile component exports was helped by demand from the US, Turkey and Italy. In rupee terms, exports grew 11 per cent to Rs 68,500 crore, data released on Tuesday by the Automotive Component Manufacturers’ Association (ACMA) showed.
The industry’s turnover grew 11 per cent to Rs 234,800 crore in 2014-15 against a decline of two per cent in 2013-14. The fortunes of the component industry are linked to vehicle sales. Passenger vehicles sales grew nearly four per cent in 2014-15 against a decline of six per cent in the previous year. Medium and heavy commercial vehicle sales grew 16 per cent in 2014-15 and two-wheeler sales grew eight per cent. “The consistent growth in exports is an indication of the growing credibility of India-made components,” said Ramesh Suri, president, ACMA. He said he expected the industry to grow eight to ten per cent this year.
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The bulk of exports are to Europe (37 per cent), Asia (25 per cent) and North America (23.2 per cent). The key components exported are engine and transmission parts, brake systems, and body parts.
The growth of automobile component exports was helped by demand from the US, Turkey and Italy. In rupee terms, exports grew 11 per cent to Rs 68,500 crore, data released on Tuesday by the Automotive Component Manufacturers’ Association (ACMA) showed.
The industry’s turnover grew 11 per cent to Rs 234,800 crore in 2014-15 against a decline of two per cent in 2013-14. The fortunes of the component industry are linked to vehicle sales. Passenger vehicles sales grew nearly four per cent in 2014-15 against a decline of six per cent in the previous year. Medium and heavy commercial vehicle sales grew 16 per cent in 2014-15 and two-wheeler sales grew eight per cent. “The consistent growth in exports is an indication of the growing credibility of India-made components,” said Ramesh Suri, president, ACMA. He said he expected the industry to grow eight to ten per cent this year.
ALSO READ: Auto components sector in Gujarat may see Rs 10-15K cr investments
The bulk of exports are to Europe (37 per cent), Asia (25 per cent) and North America (23.2 per cent). The key components exported are engine and transmission parts, brake systems, and body parts.
India, however, remained a net importer of automobile components in 2014-15. Imports grew 6 per cent to $13.5 billion against a decline of 6.3 per cent in 2013-14. China is the largest exporter of automobile components to India with a share of 24 per cent, followed by Germany (14.57 per cent), Japan (11.53 per cent) and South Korea (10.66 per cent). ACMA said it was too early to say if the Greece crisis would impact exports to Europe. “Components exported from India are used in vehicles manufactured for local sales in Europe as well as for exports. It is too early to say if there will be an impact,” said Vinnie Mehta, director-general, ACMA.
