Indian Auto Component Industry Eyes Global Deals Amid Domestic Growth Surge

The Indian auto component sector anticipates challenges but remains optimistic due to robust domestic performance and global trade negotiations. Highlights include a simplified GST rate boosting demand, a significant growth in exports, and preparations for a larger Auto Mechanica event in New Delhi.

The Indian auto component industry is bracing for challenges in the latter half of the year, as noted by Vikrampati Singhania, President of the Automotive Component Manufacturers Association. He acknowledged a slowdown in new projects, potentially affecting exports but labeled this as a temporary hurdle.

Singhania pointed to ongoing trade negotiations with the European Union, UK, and New Zealand as crucial to offsetting regional slowdowns. He emphasized the role of these agreements in softening any potential downturns, even as the US market stabilizes.

Domestically, the auto component industry has thrived thanks to a streamlined Goods and Services Tax (GST) rate, which has led to a surge in demand. The sector is also preparing for the expanded Auto Mechanica event in New Delhi, highlighting the formal aftermarket economy's growth.

In the first half of the fiscal year, the industry achieved a 6.8% growth, driven by strong demand from original equipment manufacturers and a reviving domestic aftermarket. Singhania expressed optimism about the industry's trajectory despite global economic challenges, citing steady US market performance and increased supply chain demand.

(With inputs from agencies.)