India Auto Parts Exports Increase 4.4% at $9.7 bn
By ENS Economic Bureau , 2014-04-03 12:00:00
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While domestic sales of automobile is facing decline in demand, auto components exports saw an increase of 4.4 per cent to $9.69 billion in 2013.
According to auto parts industry body, ACMA (Automotive Component Manufacturers Association of India) the auto parts market overcame a 5 per cent decline in imports to $12.70 billion last year. They said that India remained a net importer despite the decline. “Over 80 per cent of our exports are to global original equipment manufacturers (OEMs) and Tier I companies.
“Growing credibility of domestic component makers has led to many global companies setting up their sourcing centres in India,” Vinnie Mehta, Executive Director at the body told agencies.
Like software, the US remains the biggest component export market, he said. However, shipments to the US were down 7.1 per cent at $1.98 billion, it was reported. While on the other hand Germany and the UK (second and third largest market) saw an increase of 8.6 per cent ($780 million) and 3.6 per cent ($580 million) respectively. China continued to dominate the auto components export market at $2.62 billion, it was reported.
“The decline in numbers are largely a reflection of the slowdown in the Indian automobile market,” Mehta said on declining imports.
Passenger car sales declined -4.60% from April-February 2014 while the passenger vehicle segment saw -5.91% during the same period. The Indian automobile industry, considered one of the biggest and most lucrative markets in the world, has undergone many months of consecutive decline.
Indian auto components imports mainly include high tech parts from countries like Germany, Korea, Japan, Thailand while other aftermarket parts mostly come from China, it was reported. Annual car sales in India had declined for the first time in 11 years in 2013, posting a 9.59 per cent dip with the auto industry reeling under a prolonged demand slump due to the economic slowdown.
When asked about the prospects in 2014, Mehta said: “It is difficult to predict but we don’t see the market bouncing back soon”.
