From October 2018 to July this year, so many people lost their jobs
From April to September this year, the turnover of the industry declined by 10%.
15-20% decrease in the manufacturing of vehicles affected the component segment
The turnover of the auto component industry declined 10.1% to Rs 1.79 lakh crore from April to September. This is the biggest drop so far. Turnover in the same half last year was Rs 1.99 lakh crore. From October last year to July this year, one lakh temporary workers also lost their jobs. The Automotive Component Manufacturers Association (ACMA) gave this information on Friday.
Component industry performance reduced from 80% to 50%
According to ACMA, an investment of $2 billion in the first half of the current financial year was also affected due to sluggishness in the industry. However, exports grew by 2.7% to Rs 51,397 crore. Component import declined by 6.7% to Rs 57,574 crore. ACMA President Deepak Jain says that sales of all segments of vehicles have been declining for the last year. A 15–20% reduction in the vehicle also affected the component segment manufacturing.
The steel industry is in trouble.
The banking sector has an NPA problem.
The auto industry is set to cut 1 million jobs.
The real estate industry is stagnant with 12.76 lakh unsold houses.
India’s economy is in crisis https://t.co/LOlbmQvFQ3
— Shama Mohamed (@drshamamohd) August 3, 2019
According to Jain, performing the component industry has come down from 80% to 50%. It affected the expansion of the industry due to reduced demand for vehicles, increased investment by companies on BS-6 vehicles, cash shortage and lack of a clear policy on electric vehicles.
Good Morning New India except it’s not so good. It’s more like collapsing under @nsitharaman ji.
Indian auto industry growth story about to collapse: Tata Motors MD https://t.co/eFCmYhcvTF
— Sushmita Dev (@sushmitadevinc) September 6, 2019
The auto component industry is demanding a uniform 18% GST on all parts. At present, they charge GST at 18% on 60% components and 28% on the remaining 40%. This increases black marketing in the secondary market.
