Bumpy ride: TN’s auto exports fall 50% in April-Sept December 22, 2020, 12:46 PM IST
The nearly six-week lockdown till May and partial industrial shutdown till the first week of July have impacted the export of automobiles and parts from Tamil Nadu, which almost halved to $1.7 billion during April-September 2020, down from $3.3 billion a year ago.
Known as the Detroit of the south, TN’s export basket has always been dominated by automobile and auto components traditionally comprising 40% of total exports. Exports were flat in April-September 2018 and April-September 2019 at around $3.3 billion. Vehicle, component and tyre factories in the Sriperumbudur and Oragadam region hit peak production only in the run-up to the festival season in August and September.
Car parts exports exceed imports The sector saw a contraction of 34% in the first half of financial year with a turnover of Rs 1.19 lakh crore
The industry for car parts suffered a contraction in the first half of the fiscal even as exports outstripped imports for the first time though both reported a falling turnover.
The industry witnessed a contraction of 34 per cent in the first half of the current financial year with a turnover of Rs 1.19 lakh crore compared with Rs 1.82 lakh crore in the corresponding period a year ago.
This was revealed in the industry performance review conducted by the Automotive Component Manufacturers Association of India (Acma), the apex body of the industry.
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.
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