Auto Parts Industry Braces for Potential Slowdown in Second Half of Year
India's auto component industry could experience a moderation in growth during the second half of the fiscal year. ACMA President Vikrampati Singhania made this observation while addressing recent trends in the sector.
Singhania pointed out that new project announcements have slowed down recently. This development might impact future export figures for the industry. However, he emphasized that this situation is likely temporary rather than permanent.
Trade Negotiations Offer Hope for Market Diversification
The industry leader revealed that companies are actively exploring emerging opportunities through India's ongoing trade negotiations. Specifically, he mentioned discussions with the European Union, United Kingdom, and New Zealand.
"These trade deals could help us diversify our export markets significantly," Singhania explained. He acknowledged that short-term tariff-related impacts might affect some businesses. Still, he noted that the Indian government is actively engaging with global partners to address these concerns.
Strong First Half Performance Provides Foundation
During the first half of the fiscal year, the auto component industry demonstrated robust performance. It recorded a growth rate of 6.8 percent, supported by multiple factors:
- Increased supplies to original equipment manufacturers (OEMs)
- A strong rebound in the domestic aftermarket segment
- Resilient export demand despite global economic uncertainty
This solid foundation gives the industry some buffer as it navigates potential challenges in the coming months. Industry observers will be watching how trade negotiations progress and whether they can offset any slowdown in the latter part of the year.
