The Rs.2.7 trillion Indian automotive component industry began fiscal 2017 with key demand engines firing. Then came demonetisation, which impacted growth momentum in the domestic market, and plummeting truck sales in US, which hurt exports.
Now, with demonetisation behind us, can demand recover enough to offset the blip caused by it? Besides, how will changes in regulations - such as implementation of the Goods & Services Tax, more stringent emission norms, and increased safety requirements - shape the business landscape? What trends can we expect with respect to capital expenditure and mergers & acquisitions (M&As)?
And finally, what does all this mean for the credit profiles of over 300 automotive component suppliers, whose credit risk profiles have been fairly resilient to business cycles in the past.
CRISIL Ratings conducted a webinar where our experts covered:
Demand drivers for the automotive component sector