[anjan_c2007]

India's auto component makers have reported a turnover of Rs 4.2 lakh crores during the financial year (FY) 2021-22 up by 23% from the previous FY figure of Rs 3.40 lakh crores. The report says that during the pre-pandemic year viz. FY 2018-19 the turnover was Rs 3.95 lakh crores. These figures have been released by the Automotive Component Manufacturer's Association (ACMA).

Buoyant exports of Rs 1.41 lakh crore ($19 billion), up 43% triggered the turnover surge, due to the "increased interest in sourcing from India and China-plus-one policy", said Sunjay Kapur, president, ACMA, & chairman, Sona Comstar. As demand rebounded, imports grew by 33% to Rs 1.36 lakh crore ($18.3 billion), leading to a trade surplus of $700 million. That's good news and helps our balance of payments.

On the export front, India's top destinations showed an uptick - North America, accounting for 32% of Indian exports, was up 46%. "The turnover is at pre-pandemic levels now and the capex cycle is on because demand has gone up," said Kapur.

The full news here:-

https://m.timesofindia.com/business/...w/93718466.cms

In fact there were recessionary trends in car sales since mid 2018, due to a slackening of demand that was reflected in the domestic car sales figures of FY 19, very soon compounded due to the pandemic.

The figures and the buoyancy as of now are soothing and more so, the component maker's exports amply prove acceptance of their product ranges and their respective qualities by the Western markets too, among the many. We have graduated from the older decades of exporting raw material and raw minerals and metal ores to finished products, that generate jobs, financial turnovers and profits for our people and industry respectively, also aiding to add-up to our foreign exchange reserves.

[tazmaan]

Originally Posted by anjan_c2007

India's auto component makers have reported a turnover of Rs 4.2 lakh crores during the financial year (FY) 2021-22 up by 23% from the previous FY figure of Rs 3.40 lakh crores. The report says that during the pre-pandemic year viz. FY 2018-19 the turnover was Rs 3.95 lakh crores. These figures have been released by the Automotive Component Manufacturer's Association (ACMA).

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This is a very well dressed and wrongly put up news. Read the word "turnover" not quantity. The metal rates have doubled as compared to the year 2019-20. What that has done is increased the value of the "turnover".

For example my business manufactures and exports around 16 containers of castings of electric motors to USA. This is the same quantity since 2019 but the turnover has doubled ever since the metal rates shot up. This might sound as a good thing but it is actually putting a lot of stress on the finances. The margins is more or less the same (if not lower due to volatility) but the requirement of the working capital has doubled.

So our export quantity is the same but turnover has doubled, resulting in higher working capital and thinner margins. Do note metal/casting industry is very competitive and orders are shifted to competitors without a second thought.

One part of the news is true, the outlook is positive and there is a lot of interest for Indian finished product as compared to before from the west.

[anjan_c2007]

While it is true that metal prices have escalated and the Rupee value vis a vis the US dollar has taken a hit from Rs 60/- plus during 2018-19 escalating to Rs 70/-plus per dollar since 2018-19 to add to the coffers of the auto ancullary members, the news has lots of matter that need to be taken into cognisance and treated as a positive and encouraging development. The Rupee exchange rate at about Rs 78- Rs 80 per dollar was only evidenced around Q 2 of FY 22-23. Also the PLI schemes introduced by the Govt of India has also acted as a beneficiary for many auto component manufacturers.

The Economic Times report:-

India's auto component industry recorded its highest trade surplus of $700 million in a financial year in 2021-22, on the back of leading automakers across the world embarking on a 'China Plus One' strategy to de-risk supply chains in the wake of the Covid-19 pandemic.

The industry had registered a trade deficit of $500 million in 2020-21.

"Auto component exports out of India grew strongly last fiscal, reiterating the 'China Plus One' strategy being implemented by MNCs," said Sunjay Kapur, president, Automotive Component Manufacturers Association (ACMA).

He said the increased focus by the auto industry on deep-localisation and the ₹44,038 crore production-linked incentive (PLI) schemes announced by the government for advanced chemistry cell batteries, auto and auto components makers will aid in developing India into an attractive alternative source of high-end auto components.

The automotive industry has identified 12 key components with localisation potential. "Auto component exports out of India grew strongly last fiscal, reiterating the ‘China Plus One’ strategy being implemented by MNCs,” said Sunjay Kapur, president, Automotive Component Manufacturers Association (ACMA).

Auto component exports increased 43% to a record $19 billion in 2021-22. While shipments to North America went up 46%, those to Europe and Asia increased 40% and 39%, respectively. North America is the largest overseas market for Indian parts makers, accounting for 32% of overall exports last fiscal. Auto component imports during the fiscal amounted to $18.3 billion.

Enthused by the response Indian component manufacturers are receiving globally - most recently at a trade participation summit held alongside the Commonwealth Games in the UK earlier this month - industry stakeholders are looking at slashing imports of critical vehicle content and scaling up exports to corner a bigger share of the global parts business.

Industry executives said apart from ensuring a larger play in the global supply chain, the exercise will also help reduce dependence on China, which accounted for 30% of imports in 2021-22. "The dependence on China exists and cannot go away overnight. But we will have to continue to invest and look at collaborations to replace that," said Kapur.

Overall, while the automotive value-chain faced significant disruptions over the past two years due to the pandemic, rapid recovery in the local market helped sales of passenger vehicles, commercial vehicles and tractors reach the pre-pandemic levels

The link:-
https://m.economictimes.com/industry...w/93715434.cms

[GrammarNazi]

Electricity prices across Europe have become 5x post the Russia-Ukraine war and they are expected to rise further.

There is a drought in China and they've cut down Hydro-Electric power to conserve water. This has led to huge amount of power shortages among the industries too.

Many countries are surely going to import as many components from Indian manufacturers.

Hope this push encourages our domestic auto-component manufacturing sector to improve capacity with quality & technology.