India Auto Parts Industry Fell Sharply in Fiscal Year
Posted: 09/01/2014 08:09:51 Edited: 09/01/2014 09:09:51 Clicks: 2003
As India's domestic auto market continues to slump, coupled with the pressure from Chinese imported components, turnover of auto parts industry suffered the first decline for years in Indian fiscal year.
According to the data released by Automotive Component Manufacturers Association of India, in the 2014 fiscal year (April 2013-March 2014), overall of Indian domestic parts manufacturers fell by 2%, and operating profit margin fell to 10 %, falling by 2% compared with 2013 fiscal year.
2014 fiscal year has become the most dismal period for Indian automobile market in recent years. Economic slowdowns, depressed consumer sentiment, rising inflation and other factors have seriously thwarted sales performance. Besides suffering shrinking market demand, the Indian component manufacturers are also facing fierce competition from overseas counterparts.
Due to sluggish demand, 30-35% of plant capacity of auto parts manufacturers is idled and the investment projects of suppliers are also cut down. The overall amount of investment in fiscal year reduced to $ 0.7 billion from $ 1.2 billion in 2013. Abdul Majeed, the partner of PWC automotive industry, pointed out that Chinese part manufacturers are at a very favorable position thanks to the excellent infrastructure, cheap electricity supply as well as subsidies support provided by government.
According to the Automotive Component Manufacturers Association of India (ACMA), China was still the largest import source of India in 2013, which had exported total $ 2.62 billion of auto parts, with a growth rate of 10%. Germany was followed, but its total export volume decreased by 3% to $ 1.86 billion. India's imports from Japan last year reached $ 1.62 billion, falling down by 14%.
According to the data released by Automotive Component Manufacturers Association of India, in the 2014 fiscal year (April 2013-March 2014), overall of Indian domestic parts manufacturers fell by 2%, and operating profit margin fell to 10 %, falling by 2% compared with 2013 fiscal year.
2014 fiscal year has become the most dismal period for Indian automobile market in recent years. Economic slowdowns, depressed consumer sentiment, rising inflation and other factors have seriously thwarted sales performance. Besides suffering shrinking market demand, the Indian component manufacturers are also facing fierce competition from overseas counterparts.
Due to sluggish demand, 30-35% of plant capacity of auto parts manufacturers is idled and the investment projects of suppliers are also cut down. The overall amount of investment in fiscal year reduced to $ 0.7 billion from $ 1.2 billion in 2013. Abdul Majeed, the partner of PWC automotive industry, pointed out that Chinese part manufacturers are at a very favorable position thanks to the excellent infrastructure, cheap electricity supply as well as subsidies support provided by government.
According to the Automotive Component Manufacturers Association of India (ACMA), China was still the largest import source of India in 2013, which had exported total $ 2.62 billion of auto parts, with a growth rate of 10%. Germany was followed, but its total export volume decreased by 3% to $ 1.86 billion. India's imports from Japan last year reached $ 1.62 billion, falling down by 14%.
