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ICRA expects domestic auto parts industry to grow 15pct next fiscal

Auto News - Published on Mon, 21 Jan 2019

Image Source: The Economic Times
Economic Times reported that The domestic auto components industry is expected to grow at around 15 per cent in the next financial year despite a slowdown in demand in the automotive sector. According to rating agency Icra, the growth is supported by healthy volume growth in two-wheelers, commercial vehicles and and tractor segment until November last year. The rating agency also expects automobile volumes to grow 8-9 per cent during 2019-20, as against 14.8 per cent growth during 2018-19.

ICRA said that "Weighted-average demand for auto components from OEMs (original equipment manufacturers) is expected to grow by 10-11 per cent in the next fiscal, as compared with 9.5 per cent expected in FY2018, supported by strong commercial vehicle volumes.”

For exports, trade disputes, punitive tariffs, higher fuel prices and rising interest costs are expected to play spoilsport in light vehicle sales in the US, which is the major market for auto components industry other than Europe, over the next 12-18 months, it added.

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Posted By : Joykumar Irom on Mon, 21 Jan 2019
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