Summary

The Rs 3 lakh crore Indian automotive component industry grew at 11-13% last fiscal, the fastest in the past six years, riding on healthy demand across segments. Players also increased their capital outlay to cater to strong growth, supported by strong balance sheets.

Even as demand drivers remain positive supported by improving incomes, and exports are likely to benefit from a weakening rupee, some challenges are emerging, such as:

• Will rising fuel prices dampen vehicle sales and impact domestic component demand?
  
• How will the industry embrace technology changes - such as BS VI and electrification - and move ahead?
  

Within these emerging scenarios, how are credit profiles of ~300 CRISIL rated automotive component firms expected to fare?

 

These are some of the aspects CRISIL team will try to address at its webinar on the Indian automotive-components sector.

 

The webinar shall comprise a presentation from CRISIL's experts covering:

• Demand drivers for the automotive component sector
• Emerging trends in the industry and their impact
  
• Expectation on investment cycle
  
• Outlook on credit quality