“As we embark on another year, we need to reflect on some of the intrinsic challenges that we have been facing now for almost a decade,” said Deepak Jain, President of Automotive Component Manufacturers Association of India.
Jain also called for a a long-term stable and technology agnostic roadmap to allow localisation of technologies, terming it critical for the survival and competitiveness of the industry.
Speaking at the 61st Annual session of the component manufacturers’ body, Jain raised concerns about high domestic taxation, increasing fuel costs, steep rise in commodity prices affecting vehicle prices.
Jain recollected the ‘grave concerns’ raised by
Chairman R C Bhargava at the Annual convention of Society of Indian Automobile Manufacturers, over ‘the falling growth rate of vehicle consumption in the country.’
In FY2021, the automobile industry witnessed the second consecutive year of contraction in vehicle sales in as overall sales fell by 13.6%
“In this backdrop, the component industry also witnessed a de-growth of 3%, with its turnover reducing to $46 billion from $49 billion,” Jain added.
With circumstances changing and the industry becoming more volatile, Jain said it was important to find ways to survive and grow.
“If volatility is the new normal, then how can we sustain ourselves, ensure business continuity and stay relevant to our customers with uncertainty in the business and regulatory environment,” Jain added.
Inputs from PTI.
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