Auto components and parts imports from China dropped by around 42 per cent during April-July 2020 to $246.33 million from $424.32 million, a year ago. Internal combustion (IC) engines and imports reduced to $58.78 million from $89.57 million, according to the Ministry of Commerce and Industry data.
Industry representatives have attributed the drop to the pandemic-driven slowdown in automobile sales. However, with the government’s push for more localisation and initiatives undertaken by the industry, additional business of Rs 25,000–30,000 crore within the next 3-4 years is possible and if volumes are sustained.
Last year, India imported components worth $17 billion, of which China accounted for 26 per cent or $4.5 billion. The rest came from South Korea, Germany and Japan, among others, Auto Component Manufacturers’ Association of India (ACMA) data shows.
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