자동차 수요감소가 주요 원인; 회사들은 이 궁지를 벗어나기위해 수출로 시선을 돌리고 있다.

인도의 자동차산업은 높은 이자율과 상승하는 연료가격 때문에 자동차들의 수요 둔화로 현재의 회계연도에서 성장이 반감할 것으로 예상하고 있다.

올해성장이 6-8 퍼센트 성장할것이다라고 자동차부품 제조 협회장이 말했다.

실제로, 타타자동차와 같은 상용차 메이커들은 이미 그들의 생산계획에서 20 퍼센트 감산을 나타내고 있다.

이 성장둔화를 극복하기위해,  Setco Automotive 와 같은 부품제조업체들은 수출을 추진하기위해 노력하고 있고 애프터마켓에 초점을 맞추고 있다.
"애프터마켓(교환부품시장)은 OEM시장 보다 7-8배 더 크다"라고 Setco CMD Harish Sheth는 말했다. 이것은 확실한 전략이 될수 있다.

Decline in vehicle demand the main culprit; firms look to exports to save the day.

The auto component industry expects growth to halve in the current financial year owing to a slowdown in demand for automobiles due to high interest rates and burgeoning fuel prices.

“The industry will grow at 6-8 per cent as compared with a forecast of 12-13 per cent,” said Sanjay Labroo, president, Auto Component Manufacturers Association.

The Reserve Bank of India has raised its repurchase rate, or repo rate, to nine per cent from 8.5 per cent, the third increase in two months, on July 29. The benchmark rate is now at a seven-year high. It also raised the cash reserve ratio to nine per cent form 8.75 per cent in order to tame inflation.

The move forced State Bank of India and ICICI Bank, two of the country’s biggest lenders, and other banks to raise lending rates. Besides, rising input costs also affected auto component manufacturers.

In fact, commercial vehicle makers like Tata Motors have already indicated a 20 per cent production cut in their schedules. So, it won’t be surprising if car makers follow suit as sales take a beating and inventories pile-up with dealers.

This could be a difficult year for auto as analysts expect car and commercial vehicle sales to remain muted this year. Sales of tractors, too, could lose momentum.

Manufacturers, which have already seen their margins shrink by 300-400 points last quarter, are already struggling as they have been absorbing a part of the rising input costs.

The part-makers had to partially absorb the increase in prices of key inputs, though it varied across components. For instance, if the price of an input went up by 100, they got compensated for 80 and had to absorb the rest.

“It’s a challenge. We have to absorb the cost increases when volumes are not growing. Unless the market grows, it will be difficult for us to recover our investments,’’ said Srivats Ram, joint managing director, Wheels India.

To cope with the slowdown, part makers like Setco Automotive are trying to push exports and renew their focus on the after-sales market. “The replacement market is 7-8 times bigger than the original equipment manufacturer (OEM) market,” said Setco CMD Harish Sheth. That could be a viable strategy.

In commercial vehicles, where transporters are deferring their decision to buy new vehicles, there’s an incremental demand for spares in the the after sales segment.

Pushing exports overnight may be difficult unless they have initiated the process months back; getting qualified as a supplier to an OEM can take a year or two. But part-makers, who made acquisitions abroad in last few years, are trying to push exports through overseas entities who are already suppliers to OEMs.

It’s not an entirely bleak scenario. “In a slowdown, the OEMs accelerate the outsourcing. International purchasing offices of global OEMs are very active. Last year, we exported parts worth $3.8 billion,” said Labroo, who’s also the managing director & chief executive officer of sheet-glass manufacturer Asahi India Glass.

With commodity prices cooling down, the industry hopes that the inflationary pressures will abate and their ride will be less bumpy.

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