Mumbai: The auto component industry's turnover witnessed its worst ever decline in the first half of the current fiscal leading to a job loss of around 1 lakh temporary workers till July this year, industry body ACMA said.
The auto component industry turnover dropped to 1.79 lakh crore in the April-September period, down 10.1% from Rs 1.99 lakh crore in the year-ago period.
The industry body said the slowdown has also resulted in an investment loss of up to USD 2 billion dollars during the period.
"The automotive industry is facing a prolonged slowdown. The vehicles sales in all segments have continued to plummet for the last one year," Automotive Component Manufacturers Association (ACMA) President Deepak Jain said.
Considering the auto components industry grows on the back of vehicle industry, a current 15-20% cut in vehicle production has adversely impacted the auto component segment, he added.
On job losses, Jain said retrenchment has taken place from October last year till July 2019. "Primarily, it is the temporary employees who have lost jobs during the period," Jain said.
Import of components declined by 6.7% to Rs 57,574 crore (USD 8.4 billion), ACMA said.
The last time when the auto components industry witnessed a decline in turnover was in 2013-14 when it dipped by 2%, ACMA said. He said a 10% growth would have added USD 6 billion of revenue, for which the corresponding investment could have been around USD 2 billion.