There is a continued slowdown in the domestic vehicle industry, a latest update from the Automotive Component Manufacturers Association of India (ACMA) noted. The apex body representing India's Auto Component manufacturing industry, has announced the findings of its Industry Performance Review for the fiscal 2018-19. The automotive component industry that contributes 2.3% to India's GDP, 25% to its manufacturing GDP and provides employment to 50 lakh people, stood at Rs.3.95 lakh crore (USD 57 billion) for the period April 2018 to March 2019, registering a growth of 14.5 per cent over the previous year.
Commenting on the performance of the auto component industry in India, Vinnie Mehta, Director General, ACMA stated that the first-half of the fiscal 2018-19 witnessed a robust double digit growth, however the second-half saw a significant slump in vehicles sales. The component industry, in tandem, posted a some-what subdued performance with growth of 14.5% over the previous fiscal, registering a turnover of Rs. 3,95,902 crore (USD 57 billion). Auto Component exports grew by 17.1% in FY 2018-19 to Rs.106,048 crore (USD 15.16 billion).
Ram Venkataramani, President, ACMA noted that the automotive industry is facing an unprecedented slowdown. The vehicle sales in all segments have continued to plummet for the last several months. Considering the auto component industry grows on the back of the vehicle industry, a current 15 to 20% cut in vehicle production has led to a crisis like situation in the auto component sector. If the trend continues, an estimated ten-lakh people could be laid-off.
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