Auto component industry may end current fiscal in negative territory: ACMA

The automobile component industry is expected to end the current financial year on a negative note as it would be difficult for the segment to make a recovery in the second half after reporting a de-growth of 10 per cent in the first six months, ACMA President Deepak Jain said.

File photo for representational purpose (Bloomberg)
File photo for representational purpose

The Automotive Component Manufacturers Association (ACMA) also expects the first half of the next financial year to remain challenging for the industry. It, however, expects things to become relatively better in the second half of the next financial year.

"Overall, our estimate is that we will have a de-growth in the current fiscal because we have already de-grown by 10 per cent in the April-September period. I do not think it is possible to catch up (in the second half) in the current situation," ACMA President Deepak Jain told PTI.

Also check these Vehicles

Find more Cars
Mahindra Xuv300 Turbo Sport (HT Auto photo)
₹ 10.35 - 12.9 Lakhs**Ex-showroom price
Add to compare
Check latest offers
Mercedes-benz Amg E53 Cabriolet (HT Auto photo)
2999 cc | Petrol | Automatic
₹1.3 Cr**Ex-showroom price
Add to compare
Maruti Suzuki Ytb (HT Auto photo)
₹7 - 11 Lakhs* *Expected Price
View Details
Maserati Mc20 (HT Auto photo)
₹3.69 Cr***Ex-showroom price
Add to compare
Check latest offers
Maruti Suzuki Baleno (HT Auto photo)
1197 cc | Petrol | Manual
₹ 6.5 - 10 Lakhs**Ex-showroom price
Add to compare
Check latest offers
Maruti Suzuki S-presso (HT Auto photo)
₹ 4.25 - 5.99 Lakhs**Ex-showroom price
Add to compare
Check latest offers

He further said, "So, the outlook would be that we would be basically going into negative. I am hopeful that the negative would not be double digit but single digit, as the second half performance should be better as compared with the first half."

When asked about the factors that could help the industry in the fourth quarter, Jain said the expected launches of BS 6 compliant models during the period would help the automobile companies generate better sales.

"Better volumes for them would mean better sales for us as well. Secondly, BS 6 vehicles mean there would be more value addition by component makers... So, it might not give you the volume impact but it will definitely give you the value impact," he noted.

On outlook for the next financial year, Jain said the industry will have to adopt a wait-and-watch policy.

"But, looking at the market situation, it seems that first half would be challenging. We will closely monitor and align ourselves with our customers," he added.

The auto component industry's turnover witnessed its worst-ever decline in the first half of the current financial year, leading to a job loss of around 1 lakh temporary workers till July this year.

The auto component industry turnover dropped to 1.79 lakh crore in the April-September period, down 10.1 per cent from 1.99 lakh crore in the year-ago period.

The industry body said the slowdown has also resulted in an investment loss of up to USD 2 billion during the period.

First Published Date: 30 Dec 2019, 10:27 AM IST
Recommended for you
View all
Shopping Bag Shop Now
55% OFF
SOFTSPUN Microfiber Cloth - 4 pcs - 40x40 cms - 340 GSM Grey- Thick Lint & Streak-Free Multipurpose Cloths - Automotive Microfibre Towels for Car Bike Cleaning Polishing Washing & Detailing…
Rs. 269 Rs. 604
19% OFF
Involve Your Senses One Musk Organic Car Perfume, Involve Your Senses Strong Fiber Air Freshener to Freshen'up Your Car - IONE01-40 g,Car Accessories interior car perfumes and fresheners
Rs. 324 Rs. 399
73% OFF
pTron Bullet Pro 36W PD Quick Charger, 3 Port Fast Car Charger Adapter - Compatible with All Smartphones & Tablets (Black)
Rs. 349 Rs. 1,289
13% OFF
Jopasu Car Duster
Rs. 755 Rs. 869

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city