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Auto Components
Major auto component firms are likely to invest Rs 25,000-30,000 crore in the next fiscal for capacity expansion and localisation, including electric vehicle (EV) parts, ratings firm ICRA said on Thursday. The sector is also expected to invest in capacity enhancements and upcoming regulatory changes. "ICRA's interaction with large auto component suppliers indicates that the industry is estimated to spend Rs 15,000-20,000 crore in FY2025 and another Rs 25,000-30,000 crore in FY2026," Vinutaa S, Vice President and Sector Head, Corporate Ratings, ICRA Ltd said in a statement. The incremental investments would be made towards new products, product development for committed platforms and development of advanced technology and EV components, apart from capex for capacity enhancements and upcoming regulatory changes, she added. The rating agency said it expects the revenue growth of the Indian auto component industry (represented by a sample of 46 auto ancillaries with aggregate annual ..
Auto component maker ASK Automotive on Tuesday reported a 63 per cent rise in consolidated net profit to Rs 67 crore in the July-September quarter of 2024-25 compared to the year-ago period. The country's largest brake shoe and advanced braking systems manufacturer for two-wheelers had reported a net profit of Rs 41 crore in the second quarter of the previous fiscal. Total income during the quarter under review increased 22.2 per cent to Rs 976 crore from Rs 798 crore in the corresponding quarter of FY 24, the company said. EBITDA (earnings before interest, taxes, depreciation and Amortisation) stood at Rs 119 crore in the September quarter, up 50.3 per cent from Rs 79-crore in Q2FY24, ASK Automotive said. "We had a strong finish to the second quarter and first half of the year in both revenue and profitability. This is the fourth consecutive quarter of robust performance by us since listing of the company last year. During Q2 FY25, we delivered strong performance in business and
The turnover of the automotive component industry rose by 9.8 per cent year-on-year to Rs 6.14 lakh crore for the fiscal ended March 31, 2024, industry body ACMA said on Thursday. The industry had reported a turnover of Rs 5.59 lakh crore in the 2022-23 financial year. Component supply to OEMs (original equipment manufacturers) in the domestic market grew by 8.9 per cent to Rs 5.18 lakh crore, with supply to the EV manufacturing industry accounting for 6 per cent of the total component production in the country, the Automotive Component Manufacturers Association of India (ACMA) stated. Exports grew by 5.5 per cent year-on-year to USD 21.2 billion in the last fiscal while imports grew by 3 per cent to USD 20.9 billion, thus resulting in a trade surplus of USD 300 million, it stated. The aftermarket, estimated at Rs 93,886 crore, also witnessed a growth of 10 per cent in FY24, ACMA said. "It is pertinent to note that apart from an increase in vehicle production, higher value additio
Auto components maker Motherson Sumi Wiring India Ltd on Thursday reported a 38.3 per cent rise in net profit to Rs 191.44 crore in the fourth quarter ended March 2024. The company had posted a net profit of Rs 138.47 crore in the same quarter a year ago, Motherson Sumi Wiring India said in a regulatory filing. Consolidated total revenue from operations in the quarter under review was Rs 2,232.67 crore as against Rs 1,871.96 crore in the corresponding period previous fiscal, it added. Total expenses in the fourth quarter were higher at Rs 1,986.54 crore as compared to Rs 1,698.5 crore in the same period a year ago. The board has recommended a dividend of 80 paise per equity share of face value Re 1 for the financial year ended March 31, 2024, subject to approval of the shareholders at the ensuing annual general meeting, it added. For the fiscal ended March 31, 2024, net profit was Rs 638.3 crore over Rs 487.04 crore in the preceding year, the company said. In FY24, consolidated t
The industry size of airbags, a key safety feature in vehicles, is expected to grow to up to Rs 7,000 crore by FY2027 in India, from the current levels of around Rs 2,500 crore, according to ratings agency Icra. The growth in the airbag industry, which is one of the fastest growing auto component segments, is expected to be fuelled by the increase in content per vehicle arising from higher regulatory requirements and voluntary increase in the number of airbags per vehicle for enhancing safety, Icra said in a statement. "The mandatory content per vehicle for airbag manufacturers is expected to rise from Rs 3,000-4,000 currently to Rs 8,000-10,000 by October 1, 2023. The average number of airbags per car sold is about three currently, and this is expected to increase significantly post the mandatory implementation of six airbags per car from October 1, 2023," Icra Vice President and Sector Head Vinutaa S said. Accordingly, Icra said it expects the industry to grow to Rs 6,000-7,000 ..
Auto component suppliers are expected to log an 8-10 per cent growth in revenue this fiscal driven by healthy domestic original equipment manufacturers (OEMs) and pent-up demand from the aftermarket even as headwinds persist on the exports front, credit ratings agency ICRA said in a report. For the first half of the current fiscal, the industry reported a year-on-year growth of 29 per cent, ICRA said on Monday, based on projections from 49 auto ancillaries with aggregate annual revenues of close to Rs 3,00,000 crore. The export orders have slowed down in the last few months, impacted by inflationary pressures, geopolitical tensions, and supply-chain issues. "Domestic original equipment manufacturer (OEM) demand constitutes almost 50 per cent of sales for the Indian auto component industry. This is likely to remain healthy in FY2023, with double-digit growth expected in both passenger vehicle and commercial vehicle segments," said Vinutaa S, Vice President and Sector Head at ...