<p>Slowdown in automobile sector hit auto component industry severely as around 1 lakh temporary workers lost jobs till July this year, claimed auto component industry on Friday.</p>.<p>The turnover of the auto component industry dropped to Rs 1. 79 lakh crore in April-September period this year down by 10.1 % from Rs 1.99 lakh crore in the similar period last year, said Automotive Component Manufacturers Association (ACMA), said here.</p>.<p>"The automotive industry is facing a prolonged slowdown. The vehicles sales in all segments have continued to plummet for the last one year," ACMA President Deepak Jain, told reporters here.</p>.<p>Workers retrenchment has taken place from October last year till July 2019, he claimed.</p>.<p>Subdued vehicle demand, lack of clarity on policy for electrification of vehicles among others have also had an adverse impact on the expansion plans of the component sector, he said. </p>.<p>During April-September this year, exports registered a marginal growth of 2.7 % to Rs 51,397 crore during the period, while the aftermarket segment grew by 4 % to Rs 35,096 crore. Import of components declined by 6.7% to Rs 57,574 crore, Vinnie Mehta, Director General, ACMA said.</p>.<p>Seeking government help for the growth of the auto component industry, Jain said one of the main demand of the industry is a uniform 18 % GST across the auto components.</p>.<p>"At present, 60 % auto components are taxed at 18 % while remaining 40% at 28%. This has led to flourishing of grey operations in the aftermarket," he said.</p>.<p>A uniform 18 per cent rate will ensure better compliance and larger tax base, Jain added.</p>.<p>He also urged the government to revise in the definition of MSME, from one based on investment in plant and machinery to that on turnover.</p>
<p>Slowdown in automobile sector hit auto component industry severely as around 1 lakh temporary workers lost jobs till July this year, claimed auto component industry on Friday.</p>.<p>The turnover of the auto component industry dropped to Rs 1. 79 lakh crore in April-September period this year down by 10.1 % from Rs 1.99 lakh crore in the similar period last year, said Automotive Component Manufacturers Association (ACMA), said here.</p>.<p>"The automotive industry is facing a prolonged slowdown. The vehicles sales in all segments have continued to plummet for the last one year," ACMA President Deepak Jain, told reporters here.</p>.<p>Workers retrenchment has taken place from October last year till July 2019, he claimed.</p>.<p>Subdued vehicle demand, lack of clarity on policy for electrification of vehicles among others have also had an adverse impact on the expansion plans of the component sector, he said. </p>.<p>During April-September this year, exports registered a marginal growth of 2.7 % to Rs 51,397 crore during the period, while the aftermarket segment grew by 4 % to Rs 35,096 crore. Import of components declined by 6.7% to Rs 57,574 crore, Vinnie Mehta, Director General, ACMA said.</p>.<p>Seeking government help for the growth of the auto component industry, Jain said one of the main demand of the industry is a uniform 18 % GST across the auto components.</p>.<p>"At present, 60 % auto components are taxed at 18 % while remaining 40% at 28%. This has led to flourishing of grey operations in the aftermarket," he said.</p>.<p>A uniform 18 per cent rate will ensure better compliance and larger tax base, Jain added.</p>.<p>He also urged the government to revise in the definition of MSME, from one based on investment in plant and machinery to that on turnover.</p>
