ACMA Press Conference -Indian Auto Component Industry

Performance Review- FY 19 Strategic Partnership:

India- Brazil

- Vinnie Mehta

Director General

➢ Established in 1959

➢ Apex body of Auto Component Industry in India

➢ Over 850+ members from the Organized sector

➢ Represents 85% of the Industry by turnover

➢ Represented on all Strategic bodies - Government & Industry

➢ Offices across all Regions in the Country

➢ An ISO 9001-2015 Institution

About ACMA

ACMA – Excellence in Service Delivery2

Snapshot of Indian Automotive Industry

Employment:

Direct: 8 million

Indirect: 290 million

Contribution to Industrial GDP:

27 %

Exports:

8% of total export

Contribution to GDP:

7.1 %

GST Contribution

15% of total GST Collection

Contribution to

Manufacturing GDP:

49%

4th Largest Automotive industry globally

3

Passenger Vehicles Production

(’000 units)

Source: SIAM

3.465

3.801

4.010 4.028

3.434

2015-16 2016-17 2017-18 2018-19 2019-20

7.5 %

9.6%

5.4%

0.3%

-14.76 29.320

115.540

218.486

251.384

370.281

341.863

294.821

384.221

(units)

Growth rate

Annual PV Production: 2015-2020 Monthly PV Production: May-Dec 2020

CAGR:1.3% (2015-20); 10.8% (2008-14)

4

Other Vehicles ProductionAll figs in ’000 units

Source: SIAM+TMA+ICEMAFigures for financial year – April to March

787 810895

1112

752

2015-16 2016-17 2017-18 2018-19 2019-20

Passenger + Goods Carriers

19764 2071924177

2576922170

2015-16 2016-17 2017-18 2018-19 2019-20

Two & Three Wheelers

13%3%

10%

24%

2%5%

17%7%

570691

790 820761

2015-16 2016-17 2017-18 2018-19 2020

Tractors

-7%21%

14%

4%

6876

8292

75

2015-16 2016-17 2017-18 2018-19 2019-20

Construction Vehicles

11%

12%

8%

12%

Growth

rate

-32% -14%

-7% -18%

5

(Turnover includes supplies to OEMs, aftermarket sales

and exports)

Auto Components Industry Performance: H1 FY 2021

15.9

H1 2020 H1 2021

-34%

26.2

• Indications of vehicle demand sustaining post the festive season

• Industry cautiously optimistic about near to mid-term future

Growth in INR Turnover in USD Billion

Tu

rno

ve

r in

IN

R’ C

rore

(U

SD

Bill

ion

)

234869 (38.50)255635 (39.00)

292184 (43.55)

345635 (51.20)

395902 (57.10)

349637 (49.27)

2014-15 2015-16 2016-17 2017-18 2018-2019 2019-2020

CAGR: 8%

11.1%

8.8%

14.3%

18%

14.5% -11.7%

6

68522 (11.22) 70916 (10.90) 73128 (10.90)

90571 (13.50)

106048 (15.20) 102623 (14.50)

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

USA 26% Brazil 4%

Germany 7% Italy 3%

Turkey 4% Bangladesh 3%

Thailand 4% Mexico 3%

UK 4% UAE 3%

Export Destinations: Top 10 Countries in %

Exp

ort

s in

IN

R’ C

rore

(U

SD

Bill

ion

)

CAGR: 8%

10.4%3.5%

3.1%23.9%

17.1%

61%

Growth rate

in INR

North America30%

Europe30%

Asia27%

Latin America

6%

Africa6%

CIS & Baltics…

-3.2%

Exports – Auto Component Industry: 2019-20

7

82931 (13.58)90662 (13.82), 90571 (13.50)

106672 (15.90)

123688 (17.70)

109601 (15.40)

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

China 26% Thailand 5%

South Korea 14% Singapore 5%

Germany 11% Italy 3%

Japan 9% UK 3%

USA 7% Belgium 3%

Origin of Imports: Top 10 Countries in %

Imp

ort

s in I

NR

’ Cro

re (

US

D B

illio

n)

-11.4%

7.5%

9.3% -0.1%

17.8%14.4%

CAGR:6%

85%

Growth rate

in INR

Asia65%

Europe 26%

North America8%

Latin America

1%

Africa0%

CIS & Baltics

0%

Imports – Auto Component Industry: 2019-20

8

39875 (6.5)

44660 (6.8)

56096 (8.4)

61601 (9.2)

67491 (10.1)69381 (9.8)

2014-15 2015-16 2016-17 2017-18 2018-2019 2019-2020

Indian Automotive Aftermarket: 2019-20T

urn

ove

r in

IN

R’ C

rore

(U

SD

Bill

ion

)

Growth rate in

INR

CAGR: 12%

12.%

12%

25.6%

9.8%

9.6%

2.8%

9

FY21-22: Outlook for Auto Component Industry

Headwinds:

• Sustainability of demand &

economic recovery

➢ Increasing Commodity Prices

➢ Logistics Challenges –

availability of containers

➢ Semiconductors availability

• Resurgence of pandemic

• FY21-22: Year of recovery; expected growth 15-20%

Tailwinds:

• Global GDP growth in 2021 5.5%;

India 11% (IMF)

• Vaccination - hope & confidence

• V-shaped recovery in auto & others

• Positive Policy Measures – Auto PLI

We hope for a Positive growth Curve for the Next 5 Years!

10

Building Strategic Partnership

11

69,61 60,38

95,57110,37

66,40

283,76 277,84

492,63511,04

534,95

2015-2016 2016-2017 2017-2018 2018-2019 2019-2020

India Imports from Brazil India Exports to Brazil

India-Brazil Auto Components Trade

Both countries have scope to increase bilateral trade

Figures in USD Million

12

Strategic Approach

➢ Deepen Trade - explore possibility of expansion of existing PTA or enter into FTA.

➢ Facilitate partnerships in both process and product technologies.

➢ Build strategy for de-risking through joint manufacturing / partnerships.

➢ Opportunity for Brazil to collaborate for E-10/E-20 Technologies

➢ Opportunities in new technologies: Safety & Emission, Automotive Electronics, xEV components,

telematics, ADAS, and other newer technologies

➢ Facilitate B2B and B2C events between ACMA & Sindipeças

➢ Invite delegation from Sindipeças during Auto Expo 2022, 03 – 06 February, 2022, New Delhi

13

ACMA

The Capital Court, 6th Floor, Olof Palme Marg, Munirka, New Delhi – 110 067

Tel: 011-26160315, Fax: 011-26160317

E-mail: acma@acma.in, Website: www.acma.in

Thank You