 "Europe pulls down auto parts export")
Total automobile component exports declined about two per cent, compared with nearly 17 per cent in the corresponding period last year, data from the Automotive Component Manufacturers Association (Acma) showed.
Europe, which accounts for about one-third of exports, saw a decline of 12 per cent to $915 million. Shipments to Europe had surged 23 per cent in the quarter ended June 30, 2014. During the last financial year, exports to Europe had grown 5.6 per cent.
"Europe demand appears to be sluggish and there is no sign of improvement. Some of our exports are also heading to newer markets," said Nishant Arya, executive director of JBM Group, a leading component manufacturer and exporter.
India exports components worth $11 billion in a year and exports have grown at a compounded annual rate of 11 per cent for six years, according to Acma. Exports account for 29 per cent of the domestic component industry's annual turnover of $38.5 billion.
Component export to Asian markets, another large destination, declined 3.6 per cent in the corresponding period to $667 million. North America, however, saw growth of 11 per cent, to $674 million.
India primarily exports engine parts, transmission parts, brake systems, body parts, exhaust systems and turbochargers, etc. Despite annual exports worth $11 billion, India remains a net importer of automobile components.
Components worth $13.5 billion were imported in 2014-15. Electronic components are one of the key imports.
Almost one-fourth of component imports are from China. Good news is that exports are growing at a faster pace than imports. In the quarter ended June 30, component imports stood at flat $3.33 billion.