Indian auto ancillary industry to witness slower growth in FY25 and FY26: ICRA
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1 month ago

Indian auto ancillary industry to witness slower growth in FY25 and FY26: ICRA

Live Mint  

Domestic rating agency firm ICRA expects the revenue growth of the Indian auto component industry to ease to 7-9% in FY2025 and 8-10% in FY2026, from the highs of 14% in FY2024. ICRA estimates the auto component industry to incur a capex of ₹25,000-30,000 crore in FY2026 towards capacity expansion, localisation/capability development, and technological advancement, among others. ICRA expects auto ancillaries’ capex to hover around 7-8% of operating income over the medium term, with the PLI scheme also contributing to incremental capex towards advanced technology and EV components.” Further, ICRA said there would be opportunities for Indian players in metal castings and forgings because of the closure of plants in the European Union due to viability issues. Electric vehicle -linked opportunities, premiumisation of vehicles, a focus on localization, and changes in regulatory norms would support growth for auto component suppliers over the medium to long term, the agency stated.

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History of this topic

Trump's auto tariffs to have minimal impact on India's automobile sector: GTRI
8 hours, 59 minutes ago

Trump's auto tariffs to have minimal impact on India's automobile sector: GTRI

The Hindu  

The implications of the U.S. announcement to impose 25% import duty on completely built vehicles and auto parts from April 3 remain limited for India’s auto industry and may even present an opportunity for domestic exporters, think tank GTRI said on Thursday. “An analysis of India’s auto and auto component exports in calendar year 2024 suggests that the impact of …

ICRA Projects 6.5% GDP Growth for India in FY26
2 weeks, 6 days ago

ICRA Projects 6.5% GDP Growth for India in FY26

Deccan Chronicle  

Chennai: ICRA estimates India’s GDP to grow by 6.5 per cent in FY26 against 6.3 per cent expected in FY25 as urban demand is likely to revive and the capex deployment by central and state governments may spur investment activity. Overall, ICRA expects the agri Gross Value Added growth at 3.5-4 per cent in FY26 after a 4.6 per cent …

India's Auto Comp Industry on Track for Unprecedented Growth
3 weeks, 1 day ago

India's Auto Comp Industry on Track for Unprecedented Growth

Deccan Chronicle  

New Delhi: India's auto component industry is on the verge of a significant breakthrough, targeting $100 Bn in exports, according to the latest report by Boston Consulting Group, titled "Revving Up Exports: The Next Phase of Export Growth for the Auto Component Industry". Encouraging 2-3 global OEMs to establish manufacturing bases in India can serve as an anchor – helping …

Domestic passenger vehicle sales expected to grow 4-7% in FY26: ICRA
1 month ago

Domestic passenger vehicle sales expected to grow 4-7% in FY26: ICRA

The Hindu  

Passenger vehicle sales volume in India is expected to grow at a moderate pace of 4-7% in FY26 with most demand drivers remaining neutral or favourable, according to ratings agency ICRA. As for two-wheelers, ICRA said it estimates the industry volumes to grow at a healthy pace of 6-9% in FY26, following an estimated 11-14% growth in FY25. Accordingly, even …

Auto component firms to invest Rs 30K cr in FY26
1 month, 1 week ago

Auto component firms to invest Rs 30K cr in FY26

Deccan Chronicle  

PUNE: The auto component industry is likely to spend Rs 25,000 - Rs 30,000 crore for capacity expansion and localization, including electric vehicle parts in FY2026, said rating agency ICRA on Thursday. The rating agency said it expects the revenue growth of the Indian auto component industry to ease to 7-9 per cent in the ongoing fiscal and 8-10 per …

Major auto component firms likely to invest up to ₹30K cr next fiscal: ICRA
Top News
1 month, 1 week ago

Major auto component firms likely to invest up to ₹30K cr next fiscal: ICRA

Live Mint  

New Delhi, Feb 20 Major auto component firms are likely to invest ₹25,000-30,000 crore in the next fiscal for capacity expansion and localisation, including electric vehicle parts, ratings firm ICRA said on Thursday. "ICRA's interaction with large auto component suppliers indicates that the industry is estimated to spend ₹15,000-20,000 crore in FY2025 and another ₹25,000-30,000 crore in FY2026," Vinutaa S, …

India Drug, Auto Exporters See Limited Impact of US Tariffs
1 month, 1 week ago

India Drug, Auto Exporters See Limited Impact of US Tariffs

Live Mint  

-- Indian exporters don’t anticipate a major hit from US President Donald Trump’s latest threat to impose higher tariffs on automobile and pharmaceutical imports. Generic drugs from the South Asian nation are unlikely to be negatively impacted by higher levies and “any hike in tariffs would affect competitors similarly,” said Raja Bhanu, director general of the Pharmaceuticals Export Promotion Council …

Goyal asks auto-component sector to achieve $100 billion export target by 2030
6 months, 2 weeks ago

Goyal asks auto-component sector to achieve $100 billion export target by 2030

The Hindu  

Union Minister for Commerce & Industry, Piyush Goyal on Monday asked the Indian auto component manufacturing sector to achieve an exports target of $100 billion by 2030 so that sector could be one of the largest job creators in the country. Stating that the Indian auto sector would soon become the world leader from currently being the third largest in …

Auto component industry to invest $7 billion over next 5 years: ACMA
1 year, 3 months ago

Auto component industry to invest $7 billion over next 5 years: ACMA

Deccan Chronicle  

Pune: With robust demand in place in the automobile sector, the Indian auto component industry is planning to invest around $ 6.5 to 7 billion over the next five years on capacity expansion and technology upgradation, Shradha Suri Marwah, President of Automotive Component Manufacturers Association of India or ACMA said on Wednesday. The auto component industry, which recorded a 12.6 …

Behind the surprising trade surplus in auto components sector
2 years, 6 months ago

Behind the surprising trade surplus in auto components sector

Live Mint  

India’s auto components sector has always imported more than it exported, leading to a trade deficit. The auto ancillaries industry in India mainly supplies to original equipment manufacturers in the automotive industry and their tier-I suppliers in large external markets. “The China +1 policy may not have resulted in an outpour of investments into India, but we have seen benefits …

Auto component industry likely to clock 8-10% growth in FY23: report
2 years, 11 months ago

Auto component industry likely to clock 8-10% growth in FY23: report

The Hindu  

The Indian auto component industry is expected to clock 8-10% growth in FY23, supported by the easing of supply-chain issues and commodity inflation in the second half of the year, according to rating agency Icra. Domestic OEM demand has remained a mixed bag across segments in FY2022, with a slowdown in two-wheelers and semiconductor shortage dragging down overall production volumes," …

PLI scheme: Auto component companies hope to pare imports
3 years, 5 months ago

PLI scheme: Auto component companies hope to pare imports

Business Standard  

PLI scheme: Auto component companies hope to pare imports It would also reduce imp­orts from countries like China, Taiwan and South Korea and facilitate foreign collaborators to set up manufacturing footprint in India Premium India imported parts worth $13.8 billion in FY21 while it exported $13.3 billion worth of parts in the same year, according to Automotive Component Manufacturers Association. …

Auto component industry turnover falls for 2nd year
3 years, 7 months ago

Auto component industry turnover falls for 2nd year

Deccan Chronicle  

Pune: The Automotive Compon-ent Manufacturers Asso-ciation of India, on Tuesday said the turnover of the automotive component industry fell 3 per cent year-on-year at Rs 3.4 lakh crore in FY21. He said the vehicle industry in India witnessed two successive years of de-growth of 14.6 per cent in FY19-20 and thereafter of 13.6 per cent in FY20-21. The Acma said …

Indian Automakers Fear Container Shortage to Hit Parts Supply, Output in the Coming Months
4 years, 2 months ago

Indian Automakers Fear Container Shortage to Hit Parts Supply, Output in the Coming Months

News 18  

NEW DELHI: Automakers in India are bracing for a parts shortage and possible production losses over the next three to four months due to a global shortage of available shipping containers, said a trade body in the world's fifth-biggest auto market. Shipping freight rates have surged since July and companies are now finding it "almost impossible to sustain normal trade …

Govt asks auto industry to cut imports, raise exports
4 years, 6 months ago

Govt asks auto industry to cut imports, raise exports

Live Mint  

Senior ministers of the Union government took Prime Minister Narendra Modi’s clarion call of Atmanirbhar Bharat forward and urged automakers to reduce their dependence on imports, increase exports, and make India a global manufacturing hub for automobiles and auto components. Minister of railways, and commerce and industry Piyush Goyal and minister of environment, forest and climate change Prakash Javadekar also …

Automakers, suppliers should join hands to make India manufacturing hub: Experts
4 years, 6 months ago

Automakers, suppliers should join hands to make India manufacturing hub: Experts

Live Mint  

NEW DELHI: India’s automakers and component manufacturers should strive to localise bulk of parts imported from China within the next few years to drive cost competitiveness and boost exports, senior industry executives and government officials said. India in retaliation resorted to increased inspection of consignments from China and levied import restriction on certain components like tyres which has adversely impacted …

Unfavourable FTAs Disrupting Competitiveness of India Auto, Component Exports: Pawan Goenka
4 years, 6 months ago

Unfavourable FTAs Disrupting Competitiveness of India Auto, Component Exports: Pawan Goenka

News 18  

Unfavourable FTAs are “playing havoc" on competitiveness of India’s automobiles and component exports and the government must put this high on the agenda to fix it while negotiating trade agreements, Mahindra and Mahindra Managing Director and CEO Pawan Goenka said on Friday. Speaking at the annual convention of SIAM, Goenka, former president of the auto industry body, said higher logistics …

Indian auto component industry clocks turnover of Rs 3.49 lakh crore, de-grows 11.7 per cent in FY 2019-20
4 years, 7 months ago

Indian auto component industry clocks turnover of Rs 3.49 lakh crore, de-grows 11.7 per cent in FY 2019-20

India Today  

Automotive Component Manufacturers Association of India, the apex body representing India’s Auto Component manufacturing industry announced the findings of its Industry Performance Review for the fiscal year 2019-20. The turnover of the automotive component industry stood at Rs 3.49 lakh crore for the period April 2019 to March 2020, registering de-growth of 11.7 per cent over the previous year. The …

Automakers tap exports to offset loss in domestic sales
4 years, 7 months ago

Automakers tap exports to offset loss in domestic sales

Live Mint  

Automakers in India are enhancing their focus on exports to grow volumes and partly offset any loss in domestic sales. Firms such as Maruti Suzuki India Ltd, Hero MotoCorp Ltd, Bajaj Auto Ltd and TVS Motor Co. Ltd are expected to push exports in countries that have not been significantly impacted by the pandemic. For instance, Hero MotoCorp Ltd, the …

Coronavirus Lockdown: Auto component industry likely to witness double-digit degrowth in FY21, says India Ratings
4 years, 10 months ago

Coronavirus Lockdown: Auto component industry likely to witness double-digit degrowth in FY21, says India Ratings

Firstpost  

The Auto component industry is likely to witness a second consecutive year of double-digit degrowth this fiscal mainly on account of disruption in operations due to coronavirus pandemic and the subsequent lockdown, according to a report Mumbai: The Auto component industry is likely to witness a second consecutive year of double-digit degrowth this fiscal mainly on account of disruption in …

Coronavirus Outbreak: Supply chain shock will have negative impact on Indian auto component sector: ICRA
4 years, 11 months ago

Coronavirus Outbreak: Supply chain shock will have negative impact on Indian auto component sector: ICRA

Firstpost  

Rating agency ICRA on Friday said the supply chain shock due to the coronavirus pandemic will have a negative impact for Indian auto component industry New Delhi: Rating agency ICRA on Friday said the supply chain shock due to the coronavirus pandemic will have a negative impact for Indian auto component industry. Commenting on the scenario, ICRA Vice-President and Sector …

Auto sector slowdown: Component maker Bosch likely to slash a few thousand jobs in India in next four years
5 years, 2 months ago

Auto sector slowdown: Component maker Bosch likely to slash a few thousand jobs in India in next four years

Firstpost  

Bosch may retrench about 10% of its 3,700-strong workforce in the administrative and management segments while it could be more than 10% of the 6,300 workers in the manufacturing level. After giving a hint of manpower adjustments in the wake of a major decline in its first quarter profit last year due to slowdown in the auto industry, German auto …

Auto sector to gain from tax cut, says ICRA
5 years, 6 months ago

Auto sector to gain from tax cut, says ICRA

Live Mint  

Automakers and parts suppliers will benefit from the government’s step to cut corporate tax rates, rating firm ICRA Ltd said on Monday. Pavethra Ponniah, vice-president and sector head, ICRA, said the ongoing weak demand conditions may prompt original equipment manufacturers to pass on some benefits of tax revision to the end consumer with lower product prices. In a bid to …

Slump in auto aftermarket, exports to bring more stress for component makers, says report
5 years, 6 months ago

Slump in auto aftermarket, exports to bring more stress for component makers, says report

Live Mint  

Mumbai: Credit rating agency Icra has revised its outlook for the auto components industry to negative following more than three quarters of continuous decline in the wholesale dispatches across all vehicle categories. “Tight liquidity across the aftermarket dealer channel has led to de-stocking, curtailing fresh demand for the component manufacturers,” Icra said in a statement. The ratings agency also points …

Auto component makers seek uniform 18% GST
5 years, 6 months ago

Auto component makers seek uniform 18% GST

Live Mint  

Auto components industry on Friday sought uniform 18 % GST in order to help companies with their working capital borrowings which could be used to invest in long-term assets. "While the captains of our domestic original equipment manufacturers are ably representing the interventions that would be required to stimulate demand, we in the component sector seek assistance by way of …

PV sales likely to decline in the range of 4-7% in 2019-20: ICRA
5 years, 6 months ago

PV sales likely to decline in the range of 4-7% in 2019-20: ICRA

Live Mint  

Passenger vehicle sales in India is likely to decline in the range of 4-7 per cent this fiscal saying agricultural output, revival in economic and industrial growth would be critical for auto sector's growth despite recent government measures to rekindle demand. The auto industry has already registered a 21.6 per cent plus de-growth in the first four months of 2019-20, …

Auto component industry to grow at 10-12% CAGR in long term, says Icra report
6 years, 8 months ago

Auto component industry to grow at 10-12% CAGR in long term, says Icra report

Firstpost  

The auto component industry is likely to grow at 10-12 percent annually in the long term on rising rural income, higher disposable income and continued infrastructure activity, according to a Icra report Mumbai: The auto component industry is likely to grow at 10-12 percent annually in the long term on rising rural income, higher disposable income and continued infrastructure activity, …

Auto component sector likely to grow 10-12% in FY17 on strong monsoon bet: ACMA – Firstpost
8 years, 9 months ago

Auto component sector likely to grow 10-12% in FY17 on strong monsoon bet: ACMA – Firstpost

Firstpost  

In the last fiscal, the auto component industry’s turnover grew by 8.8 percent to Rs 2.55 lakh crore as against Rs 2.34 lakh crore in 2014-15 New Delhi: Indian auto component industry is expected to grow in the range of 10-12 percent in the current fiscal on hopes of above-normal monsoon and recovery in the domestic automobile market, according to …

A big push to ‘Made in India’ cars
11 years, 3 months ago

A big push to ‘Made in India’ cars

The Hindu  

In a sign of its growing stature in car manufacturing, India is emerging as an export hub of global auto firms not just for small cars but also for big cars such as mid-size sedans and utility vehicles. “While it is little early to say that India has started establishing itself as a manufacturing base for high-end cars, we do …

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