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Informist, Monday, Sep 9, 2024

 

NEW DELHI – The Automotive Component Manufacturers Association of India expects sales of auto components, which had been slacking this year, to pick up on the back of robust demand during the upcoming festival season. "There was pent-up demand post the COVID-19 pandemic, which has now softened. However, we expect sales to pick up in the second half of the financial year on the back of robust festive demand," Shradha Suri Marwah, president of the association said in a media interaction at the 64th annual session of ACMA. 

 

"Typically there is a build up of inventory in the run up to festive season, and it is the same this year as well. However, we hope to correct the slight blip we are currently seeing. We are a monsoon driven country, and they (rains) have been good this year. We are hopeful for it to have a positive impact on the sales," she said. 

 

The Indian auto component industry is projected to see a moderation in revenue growth to 5-7% for 2024-25 (Apr-Mar), according to a report by ICRA. This follows the industry's robust 14% growth in 2023-24 (Apr-Mar). The growth slump is expected on account of slower domestic original equipment manufacturer segment growth and subdued export demand, the report said. 

 

"Last year was a good year with our level of localisation increasing at a rate much faster than promised and expected. There is a lot of work happening on the skilling front across industry. All sectors are doing well," Marwah said. "It's an upward graph for the next 30 years as we go forward."

 

According to Marwah, the Automotive Component Manufacturers Association of India's mobility foundation is reaching out to electronic companies including all large players, such as Panasonic, Dixon etc. "We are also working with a lot of startups as software will propel our future," she said. 

 

On the export front, strong headwinds from the European Union and West Asia have been witnessed, Marwah said. "Elections are happening in other parts of the world, which are impacting on their consumption and therefore our exports. We are in a wait and watch mode."

 

Assessing the outcome of the US election on India's auto component exports, she said the US was not a concern for India despite who wins. "It is the largest market of auto component importers. We do not assess any adverse impact on Indian exports to the US."  End

 

Reported by Pallavi Singhal and Darshan Nakhwa

Edited by Vidhi Verma

 

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