Shipping freight rates have surged since July
Automakers in India are bracing for a parts shortage and possible production losses over the next three to four months due to a global shortage of available shipping containers said a trade body in the world s fifth-biggest auto market. Shipping freight rates have surged since July and companies are now finding it almost impossible to sustain normal trade operations , said Rajesh Menon, director general at the Society of Indian Automobile Manufacturers (SIAM). That is a cause for concern just as India s auto industry has started showing signs of recovery after coronavirus lockdowns eased.
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Automakers in India are bracing for a parts shortage and possible production losses over the next three to four months due to a global shortage of available shipping containers, said a trade body in the world s fifth-biggest auto market.
Shipping freight rates have surged since July and companies are now finding it almost impossible to sustain normal trade operations , said Rajesh Menon, director general at the Society of Indian Automobile Manufacturers (SIAM).
That is a cause for concern just as India s auto industry has started showing signs of recovery after coronavirus lockdowns eased.
SIAM represents major domestic companies such as Maruti Suzuki and Tata Motors as well as global manufacturers including Volkswagen AG and Ford Motor which are major exporters.
Indian Auto Components Sector Registers Revenue Decline Of 34 Per Cent In H1 2020-21
The overall turnover of the automotive component industry stood at Rs. 1.19 lakh crore for the period April 2020 to September 2020 which is a registering a decline of 34 per cent over the first half of the previous year.
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Overall turnover in the auto component sector stood at Rs. 1.19 lakh crore in H1 FY 2020-21.
Highlights
Exports in the same period declined by 23.6 per cent
Imports of auto components decreased by 32.7 per cent
Automotive Component Manufacturers Association of India (ACMA) has announced the findings of the component industry performance review for the first half of fiscal 2020-21. The overall turnover of the automotive component industry stood at ₹ 1.19 lakh crore for the period April 2020 to September 2020 which is a registering a decline of 34 per cent over the first half of the previous year. Exports in the au
House panel pitches for automobile GST cut The sector suffered Rs 2,300-crore loss a day and an estimated job loss of about 3.45 lakh because of the pandemic and subsequent lockdowns
The auto sector needs a focused stimulus package, including a 10 per cent cut in GST rate and financial incentives in the scrappage policy, a parliamentary panel report has said.
The automotive sector suffered Rs 2,300-crore loss per day and an estimated job loss of about 3.45 lakh because of the pandemic and the subsequent lockdowns.
The cost of BS-VI vehicles is expected to be higher by 10-15 per cent because of the upgraded technology. The panel is of the view that cutting the GST rate to 18 per cent from 28 per cent will bring down the cost of vehicles substantially, creating more demand for newer vehicles. The increased sales because of the GST rate cut will cover up the loss in revenue.
Auto components industry to take double-digit beating in growth this fiscal: ACMA PTI
New Delhi: Auto components industry body ACMA Wednesday said the sector will see a double-digit decline in growth this fiscal, after witnessing 34 per cent fall in the first half of the year due to coronavirus-induced disruptions.
Automotive Component Manufacturers Association of India (ACMA) said it can take anywhere “between two to three years, depending on how steep the recovery is” for the component makers to work out a whole sector Capex planning.
In the first half of the fiscal, ACMA said the turnover of the automotive components industry stood at Rs 1.19 lakh crore (USD 15.9 billion), registering a de-growth of 34 per cent as compared to Rs 1.82 lakh crore (USD 26.2 billion) in the first half of the previous fiscal.