|
The Indian auto component industry expects some challenges in the second half of the year. Speaking to ANI, Vikrampati Singhania, President of the Automotive Component Manufacturers Association (ACMA), noted that recent new projects have slowed, which could affect long-term export growth. However, he described this as a "temporary phenomenon."
To mitigate potential slowdowns in specific regions, the industry looks toward India's ongoing negotiations for bilateral and free trade agreements with the European Union, the United Kingdom, and New Zealand. "Even if the US slows down temporarily, other markets will start falling in place to be able to soften the landing a little bit," Singhania added. Domestic performance has been further bolstered by the rationalization of Goods and Services Tax (GST) rates. The transition from dual rates of 28 per cent and 18 per cent to a uniform 18 per cent for auto components simplified operations and reduced confusion, he said. Singhania noted, "As GST rates have come down in the number of categories in the auto side, demand has picked up and because their demand has picked up the auto component industry supply chain demand has picked up." The industry also prepares for the upcoming Auto Mechanica in New Delhi, which has doubled in size to include over 850 exhibitors. This expansion reflects the continuing consolidation of the formal aftermarket economy in India. Singhania said that while short-term impacts from international tariffs may occur, the government continues to negotiate with global partners to protect the interests of the Indian supply chain. Speaking about the first half of the fiscal year, he noted that the industry recorded 6.8 per cent growth, maintaining a stable and robust performance. The growth was driven by strong demand from original equipment manufacturers (OEMs), a reviving domestic aftermarket, and increased exports despite prevailing global economic headwinds. Singhania stated that the industry's trajectory remained positive to date. "This first half of the year continues to be stable and overall robust from industry perspective. Overall growth of the industry has been about 6.8%," Singhania said. He noted that supply to OEs grew by over 7 per cent, while the domestic aftermarket experienced a "strong revival of about 9% growth over the previous year." "The US has broadly stayed stable from an India export perspective, whereas some other markets have grown. It takes OEs a long time to switch to alternative suppliers because the process of qualification, quality approval is not an instant thing," he explained. (ANI)
|
