DOC

IT Industry Performance 2006-07

By Arthur Roberts,2014-06-19 06:55
9 views 0
IT Industry Performance 2006-07

     Automotive Component Manufacturers Association Of India

    Press Release

    2010-11: Auto Component industry records USD 39.9 billion in turnover; grows 34%

; Industry expected to grow 12-15% in 2011-12

    ; Recommends Policy initiatives to encourage core-manufacturing

New Delhi; August 30, 2011: ACMA, the apex body representing India’s Auto Component

    manufacturing industry, today announced the findings of its Industry Performance Review for fiscal 2010-11. The turnover of the auto component industry stood at Rs. 182,127 crores (USD

    39.9 billion) for the period April 2010 to March 2011, registering a growth of 34 per cent (in rupee terms) over the previous year. This data represents the entire supplies from the auto component industry to the on-road and off-road vehicle manufacturers and the aftermarket in India and overseas from ACMA member and non-member companies, including component suppliers captive to the OEMs and the unorganized & smaller players.

    Auto component consumption in 2010-11, in tandem with the significant growth in the vehicle sales in the domestic market grew at a robust pace. However, in the current fiscal, with business sentiment in the vehicle industry moderating, the auto component industry is expected to grow in the range of 12-15%.

Commenting on the industry performance, ACMA President, Srivats Ram said: “The auto

    components sector, in sync with the vehicle industry, grew to a healthy USD 39.9 billion in 2010-11. The exports especially with signs of recovery in North America, Western Europe and Asian markets grew by 54% over the last year to touch USD 5.2 billion. Imports crossed USD 8.5 billion, growing 30% over the last fiscal. The first quarter of 2011-12 witnessed some slowdown in vehicle consumption in India and this seems to suggest that the growth in the auto component industry in the current fiscal will be in the range of 12-15%.”

    Addressing the challenge of access to capital in the auto component industry he elaborated, “The growth in the auto component industry will require cost-effective funding across the

    various tiers in the industry to ensure that adequate capital addition takes place to fund the future growth. It is important to recognize that the relative scale and size of companies in the industry will grow over a period, and the need to provide funding based on the potential that industry players offer. As the scale and sophistication of the automotive industry evolves, the nature of technology required will also change and require capital to ensure both global competitiveness and technology leadership.”

    Delineating his thoughts on the current policy environment and the need for supporting Auto component manufacturing in the country, ACMA Vice President, Arvind Kapur said: It is

    important that investments are made in core manufacturing processes to ensure that there is adequate in-country value-add to secure our position as a global hub for automotive

     1

    manufacturing. Herein, policies should encourage core manufacturing over purely assembly oriented investments in automotive technology.”

    “On foreign trade, India should consider establishing Foreign Trade Agreements (FTAs) with countries like Brazil, South Africa etc. who already have a ready market for our products. We also need to ensure that FTAs do not result in inverted duty structures and that they are not a disincentive to source or manufacture in India. Further on the exports front, it is important that the government continues its scheme of export incentives, as many of our export contracts are long term in nature. ”, added Arvind.

    Sharing his thoughts on the need for a conducive ecosystem for the auto component industry in India, ACMA Executive Director Vinnie Mehta said, “In order to keep the growth

    momentum, as also to stay competitive, the industry, on one hand, needs to optimise capacities, raise capital, absorb technologies, build R&D competence, concentrate on innovation, focus on internal governance and develop strong organization; on the other, Government needs to focus attention to address the challenges of access to capital, availability of skilled manpower, rapidly increasing inflation, access to technology and lack of proper infrastructure, including power.

    Some of the other observations of the ACMA Industry Performance Review 2010-11: ; Exports: The Exports of auto components grew to USD 5.2 billion from USD 3.4 billion in

    2009-10. Europe accounted for 36% of exports followed by Asia and North America at 28%

    and 23% respectively. Although the proportion of exports to Europe declined from 40% last

    year to 36%, however in absolute terms the exports grew by 46%. Exports to North

    America and Asia grew by 65% and 48% respectively. With exports to North America,

    Europe Asia and other parts of the world are improving, a full recovery of exports are

    expected to gain strength in 2011-12.

    ; Imports: With growth in the domestic market, imports of auto components also grew by

    30% to USD 8.5 billion from USD 6.5 billion in 2009-10; almost 85% of the imports were

    accounted for by the OEMs, the rest 15% by the aftermarket. Asia and Europe contributed

    to over 56% and over 35% of the imports respectively. Within Asia, China, South Korea and

    Thailand contributed to the maximum imports to India while from Europe the key

    contributors were Germany, Italy and Czech Republic. The quantum of imports has also

    increased due to several FTAs and other trade agreements signed by the Government.

    ; Capacity Addition: The auto component industry added capacity in the range of USD 2 -

    2.25 billion in 2010-11 in several green-field as well as expansion projects. The cumulative

    investment (gross-block) in the auto component sector in India over the last five years

    stood at over USD 6.5 billion. The industry is expected to add at least another similar

    number in capacity addition 2011-12.

     2

    Summary of Findings:

     2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

    Turnover 18.9 22.9 26.5 23.0 30.1 39.9

    (USD Bln)

    Turnover 83,900 104,000 106,400 105,700 135,700 182,100

    (Rs. Crs.) Growth rate - 24 2.3 -0.7 28.4 34.2 (%)

    Export 2.7 3.1 3.8 4.0 3.4 5.2

    (USD Bln)

     Growth rate - 17.6 19.4 6.4 -15.5 54 (%)

    Imports 3.0 3.9 6.2 6.8 6.5 8.5

    (USD Bln)

     Growth rate - 28.8 61.4 9.6 - 4.2 30.2 (%)

    Investment 0.66 1 1.8 0.1 1.7 2-2.25

    (USD Bln)

Note:

    ; Turnover data represents the entire supplies from the auto component industry to the

    on-road and off-road vehicle manufacturers and the aftermarket in India and overseas

    from ACMA member and non-member companies, including component suppliers captive

    to the OEMs and the unorganized & smaller players.

To download the entire presentation, visit:

     www.acmainfo.com/docmgr/Press_Releases/2011-12_Press_Release.doc

About ACMA:

    The Automotive Component Manufacturers Association of India (ACMA) is the apex body representing the interest of the Indian Auto Component Industry. Its active involvement in trade promotion, technology up-gradation, quality enhancement and collection & dissemination of information has made it a vital catalyst for this industry’s development. ACMA’s charter is to

    develop a globally competitive Indian auto component Industry and strengthen its role in national economic development as also promote business through international alliances. ACMA is an ISO 9001:2008 certified Association.

Enclosed: Profile of Key Persons

     ACMA Annual Performance

     3

Report this document

For any questions or suggestions please email
cust-service@docsford.com