Automakers largely absorb the currency impact

Exchange risk management & natural hedges offset part of pressure

The last part of a four-part series on the impact of a strong rupee on key export-oriented industries looks at the automobiles sector

One of every five cars and every 10 two-wheelers produced in this country gets exported. India also exports commercial vehicles and three-wheelers in large numbers. In addition, automobile components worth Rs 70,000 crore get exported every year. Not to forget thousands of tractors and millions of tyres, to destinations across the globe.

So, any strengthening of rupee against the dollar hits the sector, reducing the export income of companies and putting pressure on their margins. The industry