Auto component imports from China rise 35%, despite self-sufficiency efforts

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Express press service

NEW DELHI: Despite a call from India to reduce its dependence on Chinese products, the neighboring country remains India’s largest importer of automotive components. In fiscal year 2022 (FY22), the total value of auto components imported from China rose 35% year-on-year to USD 5.46 billion, according to data released by the Auto Component Manufacturers Association of India. (ACMA).

“Asia with China dominates the guest countries we import from and China remains the largest importer. % from $4.03 billion in FY21 to $5.46 billion in FY22,” said ACMA Chief Executive Vinnie Mehta. behind, accounting for only around 11% of automotive component imports.

The Indian government has taken a proactive approach to reduce its reliance on China as tension between the two countries remains high following a clash between their troops in the Galwan Valley in 2020. In addition, India has launched its ambitious Production Linked Incentives (PLI) program in the sector to attract global companies to manufacture in the country and become an alternative supply chain destination.

However, reliance on China for the sector is unlikely to slow in the near future.
“The dependence on China exists and it is not going to disappear overnight. We will need to continue to invest in technology to reduce this dependency,” said Sunjay Kapur, ACMA Chairman and Chairman of Sona Comstar.

He added that different companies will need to consider different methods and solutions to replace this dependency. According to the ACMA, India’s auto components industry recorded its highest revenue of `4.2 lakh crore in FY22 – a growth of 23% from last fiscal year. The growth comes despite headwinds such as chip shortages, high commodity prices and falling two-wheeler sales.

NEW DELHI: Despite a call from India to reduce its dependence on Chinese products, the neighboring country remains India’s largest importer of automotive components. In fiscal year 2022 (FY22), the total value of auto components imported from China rose 35% year-on-year to USD 5.46 billion, according to data released by the Auto Component Manufacturers Association of India. (ACMA). “Asia with China dominates the guest countries we import from and China remains the largest importer. % from $4.03 billion in FY21 to $5.46 billion in FY22,” said ACMA Chief Executive Vinnie Mehta. behind, accounting for only around 11% of auto component imports.The Indian government has taken a proactive approach to reduce its dependence on China, as tension between the two countries remains high following a clash between their troops in the Galwan Valley in 2020. In addition, India has launched its ambitious Production Linked Incentives (PLI) program in the sector to attract global companies to manufacture in the country and become a destination supply chain alternative ionization. However, reliance on China for the sector is unlikely to slow in the near future. “The dependence on China exists and it is not going to disappear overnight. We will need to continue to invest in technology to reduce this dependency,” said Sunjay Kapur, ACMA Chairman and Chairman of Sona Comstar. He added that different companies will need to consider different methods and solutions to replace this dependency. According to the ACMA, India’s auto components industry recorded its highest revenue of `4.2 lakh crore in FY22 – a growth of 23% from last fiscal year. The growth comes despite headwinds such as chip shortages, high commodity prices and falling two-wheeler sales.

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