New Delhi [India]March 25 (ANI): The auto component industry in the country is facing export challenges due to the ongoing overhang of tariffs by the United States. In addition, currency depreciation has demanded weakness in some Middle Eastern countries and a large recession in the European region, a report by Dam Capital Advisors.
However, the report also stated that Indian companies that hold less risk for these countries are planning to reduce the impact by adding new customers from various other geographicals.
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It said, “The ongoing overhang of tariff by the USA, the weakness of demand for depreciation in some Middle East countries and the major recession in the European region are high level demand uncertainty on the export front.”
It also said that some Indian auto component manufacturers, who are less risk for these affected markets, are trying to reduce the impact. They are focusing on connecting new customers from different regions, increasing their market share and getting small orders from both auto and non-auto segments in various geographical fields.
The overall automobile industry in India is currently experiencing weakness of near -term demand, with slow or decreasing growth in some segments. While domestic demand is stable, development is under control. Price competition is increasing, leading to increasing exemption in most vehicle categories.
The report also states that the demand for passenger vehicles (PV) and commercial vehicles (CV) appears weak, while the two-wheeler segment is doing relatively better. Two-wheelers and three-wheelers exports are healthy, supporting the stability of the section.
Meanwhile, the tractor industry stands out with a positive attitude and is expected to grow in double digits by March 2025.
Despite the challenges, the auto components are convinced about improving the industry. Their optimism is powered by rising materials, premiumrs, introduction of new features and increasing stake of electric vehicles (EVS), which requires more components.
Many companies are planning to expand their offset to launch new products and maintain development and offset the effects of overall industry recession.
Experts and industry leaders are positive about recovery in the second half of FY 26, especially with the onset of festive season, which usually increases high demand. (AI)
This report has been auto-generated from Ani News Service. ThePrint does not have any responsibility for its content.