Defying all apprehensions over the impact of tariff war amongst the major economies of the world on export of automobile components, Indian manufacturers and exporters registered an impressive 24- 53 per cent growth in shipments of this sector to top major importers, during the first quarter of the current fiscal.
According to an EEPC India analysis, Between April and June 2018-19, the USA remained the topmost importer of the Indian auto components/parts from India, aggregating USD 290 million , clocking in an annualised growth of 23.80 per cent for the quarter, while Turkey was at the second position with aggregated auto component exports of about USD 100 million and a growth of 28.36 per cent. Bangladesh, Brazil and Germany were the other major importers of Indian auto components with aggregate shipments of USD 80 million , USD 72 million and USD 61 million respectively for the period.
While Bangladesh showed the maximum growth of over 53 per cent during April-June this fiscal over the FY 2017-18, the USA was far ahead in total value.
“We had seen some concerns amongst the stock investors as regards Indian auto exporters after tariff and counter-tariff issues cropped up among two major economies, but performance of our auto component exporters has been quite good. Close to 24 per cent growth in auto components exports to the USA does not reflect any trade war impact,” said Mr Ravi Sehgal, Chairman, EEPC India.
Though low in scale, Indian auto component makers have found expanding markets in Romania, Japan, Vietnam and Colombia.”This shows a quality of enterprise on the part of our exporters,” added the Chairman of the apex engineering export organisation.
Cumulative engineering exports during the first quarter (Apr – Jun) of 2018-19 stood at USD 20.47 billion as against USD 17.65 billion during the same quarter last fiscal,recording 15.96 percent growth year-on-year.