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Auto component sales in the first half of the year declined year-on-year (YoY) by 10 per cent to Rs 1.79 lakh crore, while that of exports and aftermarket grew during this period.
Exports registered a growth of around 3 per cent to Rs 51,397 crore, and the after-market grew by 4 per cent to Rs 35,096 crore during the first half of this year, Automotive Component Manufacturers Association of India (ACMA) said on Friday.
The industry body also said that there has been a job loss of around one-lakh temporary workers between October 2018 and July 2019.
"The automotive industry is facing a prolonged slowdown. The vehicle sales in all segments have continued to plummet for the last one year. Considering component industry grows back on the back of the vehicle industry, a current 15-20 per cent cut in vehicle production has inter-alia adversely impacted the auto components industry performance and investments," Deepak Jain, President, ACMA said here.
Going forward, with transition to BS-VI and implementation of safety norms, the value-addition from the component industry is expected to progressively increase, he said.
Subdued vehicle demand, recent investments made on transition from BS-IV to BS-VI, liquidity crunch, lack of a clarity on policy for electrification of vehicles, among others, have also had an adverse impact on the expansion plans of the component sector, he added.
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