Auto sector may spend Rs 17,000 cr on capex till FY21 despite slowdown

Projected capex will largely be towards BSVI transition, international expansion

Amid slowdown in the automobile sector, the combined capex of listed automakers and component manufactures is expected to be about Rs 17,000 crore in the current and the next financial years. Some of these companies brought down their initial capex estimates by 10-15 per cent.

The projected capex —based on Narnolia Research and investors call transcripts after major listed automakers and component manufacturers announced their Q2 results — will be largely towards BSVI transition, developing new products, and expansion in international markets.

India’s largest carmaker Maruti Suzuki has announced that it will end up spending about Rs 4,000 crore in FY20. "We