India's automotive-components sector is on track to clock double-digit growth this fiscal, too, almost mirroring the that of the automobiles sector.
Demand from original equipment manufacturers (OEMs), the largest business segment of the automobile sector, will continue to be healthy, but slower than in the past two fiscals, as pent up demand wanes.
Demand from the replacement segment, which is the second-largest segment, is seen steady benefiting from the lagged impact of strong OEM sales in the past fiscals.
But revenue from exports is expected to be sluggish for the second year in a row due to continued weak demand stemming from the global slowdown, and slower growth in incomes impacting demand for vehicles.
Yet, the sector's operating profitability should gear up to pre-pandemic levels on better operating leverage, moderating commodity prices, higher realisations, and premiumisation of vehicle sales.
Besides, like OEMs, automotive-component manufacturers are stepping up capital expenditure budgets with emphasis on new products, including Production Linked Incentive (PLI) scheme related commitments, and for broadening their portfolio of electric vehicle (EV) components.
In this milieu, CRISIL is hosting a webinar on Thursday, May 18, 2023, at 3 pm, where our teams will, through a presentation, delve into
Trends in structural growth drivers
Overview of EV component market and its likely impact
Outlook on revenue and operating profitability of CRISIL Ratings portfolio
Key credit quality trends and expectations
This will be followed by a panel discussion and Q&A, with experienced senior professionals from the automotive component sector.
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
