Auto-component units face 14-16% fall in revenue: CRISIL SME Tracker

Sales of automotive components will be dented this fiscal as demand for automobiles plunges to a decadal low after the Covid-19 pandemic acted as a brake on demand, and lockdowns caused supply-chain disruptions and labour shortages.

Small and medium enterprises (SMEs), which make up a third of the sector, have been badly hit. 

Revenues of auto-component SMEs could plunge 14-16 per cent year-on-year in the current fiscal year. Much of the decline will result from lower demand from tier-1 units catering to original equipment manufacturers (OEMs). Replacement demand, the other major source of revenue, could fall for the first time