Automotive component makers in India are expected to experience a 10-12% increase in revenue during the financial year 2023-24 due to continued domestic growth, according to Crisil Ratings on Thursday. Robust demand from automobile manufacturers and aftersales services are fuelling growth, despite sluggish exports. Crisil Ratings also noted that moderation in the prices of key raw materials will support their operating margin. Additionally, improving semi-conductor availability will support supplies of passenger vehicles and premium motorcycles. However, exports are likely to remain sluggish due to headwinds in Asia, Africa, and Latin America, while the revenue from the aftermarket segment is expected to grow at a steady 6-8%. Going forward, component markets are expected to diversify their product basket by enhancing their focus on the electric vehicle industry. With electric vehicle adoption anticipated to be fastest in the two-and-three-wheeler segments, component makers with high exposure to engine and transmission components are expected to diversify their product basket to meet PLI-related commitments, further pushing up capital spending.
Automotive parts suppliers to see 10-12% growth in revenue this year predicts Crisil
Date:
Updated: [falahcoin_post_modified_date]
More like thisRelated
Revolutionary Small Business Exchange Network Connects Sellers and Buyers
Revolutionary SBEN connects small business sellers and buyers, transforming the way businesses are bought and sold in the U.S.
District 1 Commissioner Race Results Delayed by Recounts & Ballot Reviews, US
District 1 Commissioner Race in Orange County faces delays with recounts and ballot reviews. Find out who will come out on top in this close election.
Fed Minutes Hint at Potential Rate Cut in September amid Economic Uncertainty, US
Federal Reserve minutes suggest potential rate cut in September amid economic uncertainty. Find out more about the upcoming policy decisions.
Baltimore Orioles Host First-Ever ‘Faith Night’ with Players Sharing Testimonies, US
Experience the powerful testimonies of Baltimore Orioles players on their first-ever 'Faith Night.' Hear how their faith impacts their lives on and off the field.
