Summary

After cruising for a while, the ~Rs 3.5 lakh crore Indian automotive component sector has run into two speed-breakers.

Automobile sales have decelerated for two quarters even as the industry navigates regulatory challenges.

In the near to medium term, safety requirements, Bharat Stage VI (BS VI) emission and fuel economy norms will have a material bearing on the domestic components sector. And more disruptions are likely in the medium-to-long term because of increased adoption of electric vehicles.

The impact of all this would vary at the sub-segmental level within the automotive components sector. Therefore, players would need to adopt varying strategies to drive well.

To be sure, there would be some offset from steady aftermarket demand and export prospects.

In this context, CRISIL will be hosting a webinar on the automotive components sector, which will cover:

• Demand drivers and outlook for the automobile and automotive component sectors
• Impact of key regulations such as BS-VI and safety and fuel-efficiency norms
• View on electric vehicles and possible disruptions
• Expectation on the investment cycle
• Outlook on profitability and credit quality

This will be followed by a panel discussion with industry experts and a Q&A session.