Automotive Component Makers to Register 10-12 Percent Revenue Growth - News

Crisil Ratings predicts a 10-12 percent revenue growth for automotive component makers in India during FY 2023-24. The growth is attributed to domestic demand from automobile manufacturers and after-sales demand from services, despite sluggish exports. Moderation in key raw material prices will support operating margins to reach pre-pandemic levels of 12.0-12.5 percent. 
According to Anuj Sethi, Senior Director, CRISIL Ratings, improved semiconductor availability will support passenger vehicle and premium motorcycle supplies, while revenue from the aftermarket segment, which accounts for the balance, will grow at a steady 6-8 percent due to strong automotive sales in previous fiscals. Component markets are projected to expand their product baskets further by focusing more on the needs of the electric vehicle industry. 
Similarly, Poonam Upadhyay, Director, CRISIL Ratings, stated that with EV adoption expected to be fastest in the two- and three-wheeler segments, auto component makers will likely focus on diversifying their product basket, and the focus on meeting Production-Linked Incentive related commitments and capacity enhancements will drive up capital spending.