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Rs 3.45 Lakh Crore Worth Of Auto Parts Sold In FY 2018, Growth In Sales Highest In Six Years
Automotive Component Manufacturers Association announces the figures (pic via Twitter)
Auto parts manufacturers in India registered an 18 per cent sales growth in Financial Year 2017-18 to sell components worth Rs 3.45 lakh crore, Livemint has reported. This growth figure was the highest since Financial Year 2012-13.
The exports too saw a growth of 23.9 per cent, rising to the five-year high figure of Rs 90,571 crore.
Automotive Component Manufacturers Association of India (ACMA) announced these numbers at a press conference on Monday.
Such growth is said to be aided by robust demand for trucks, cars and two-wheelers. India is the fourth largest automobile market in the world. In all, truck and bus sales saw a growth of 20 per cent to notch a figure of 856,453 units, and a record 2.01 crore units of two-wheelers were sold in the same period.
The sector had seen a slowdown in business following demonetisation of high-value currency in November 2016, but, rebounded thanks to the launch of newer models and easier financing by banks.
Despite the gains, the imports increased by 18 per cent to Rs 1.06 lakh crore thanks to rising dependence on China. The ACMA expressed concern about the import of Chinese auto parts, especially in the aftermarket sector owing to a lack of specified standards.
The ACMA has sought a reduction in Goods and Services Tax (GST) on auto parts to 18 per cent. Currently, 40 per cent of these components attract a 28 per cent GST.
The association claims that lower taxes would increase compliance and improve tax collections.
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