The Automotive Component Manufacturers Association of India (ACMA) has issued a statement regarding the potential impact on vehicle production due to the delay in component imports from China. The statement comes after the government’s decision on import consignments for 100 percent manual inspection from China, resulting in delays in withdrawals. ACMA President Deepak Jain explained the complexity of the automotive value chain, saying that some components imported from China are important for vehicle production such as engines and parts of electronics, for which India is yet to develop an independent capability .
The auto component industry in India is committed to the ‘Atmanbir Darshan’ of our honorable Prime Minister. The entire automotive value chain in the country is approximately USD 118 billion, with auto components imports amounting to USD 4.75 billion, accounting for 4% of the total auto industry business.
Some items imported from China are important components such as parts of engines and electronics items for which we are yet to develop domestic capacity. The automotive value chain is a highly complex, integrated and interdependent one; The unavailability of a single component can, in fact, lead to stagnation of vehicle manufacturing lines.
Post lockdown, production in the component industry is slowly picking up in tandem with increased vehicle sales, so it is in the best interests of the industry and the economy that any other disruption is best avoided.
The Indian auto industry SIAM supported ACMA on the matter, with Rajan Vadhera, President, SIAM saying: “Delay in evacuation due to congestion at the port may affect the construction of vehicles in India. The industry is piecing itself together as growth lulls back; At this time the best defense is from any other disruption. ”
ACMA is the apex body representing the Indian auto component industry, contributing 2.3% to India’s national GDP. The industry reported a turnover of Rs 3,95,902 crore in FY 2018-19 registering a growth of 1495%. While exports showed growth of Rs 106,048 crore in FY 2018-19, scaling 17.1%. The aftermarket rose 9.6% to Rs 67,491 crore from Rs 61,601 crore in the previous financial year.