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Automotive Product Finder Magazine | Indian Auto Component Industry – Review FY19 & Outlook
Indian Auto Component Industry – Review FY19 & Outlook
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With host of new technology and innovation in the automotive manufacturing and the auto component space has led to emergence of sustainable mobility options like electric vehicles (EVs), while it is showing benefits of IoT-based platform in controlling emissions and energy. Today, Indian component manufacturers are developing globally-competitive products. The time of slowdown is known for upgrading and innovating new products. Auto component segment is expected to see pressure due to the price hike of the steel and other raw materials in 2019 which was backed by the subdued demand. The report highlights that the FY20 will also see auto component companies in pressure due to factors like slowdown and BS-VI.
Component manufacturers involved in diverse supplies like aftermarket, exports besides OEMs will stand a chance to be in a better position. Further, product development, technology advancement will keep exerting more pressure on the component manufacturers. Even though the auto sector is falling and is amid slowdown, there is still hope. As of now the auto sector has seen declining growth rate. Export is one of the ways to bring in efficiency in the market. Due to the slowdown affecting globally, the number of units exported have been going down, leaving more pressure on the component manufacturers as with the time the demand is seen falling at a faster rate.
Moving ahead with this situation, targeting for more local sales in the aftermarket and through ecommerce will serve as a key to the component manufacturers. Further, according an IBEF Report, 25.6 per cent share accounted to the engine and exhaust segment among various components. This clearly shows the demand trend in the auto industry towards the BS-VI emission norms, therefore, the rise. In future, hybrid and EV components will see growth opening a new segment in the auto sector.
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