Major auto component firms likely to invest up to Rs 30K cr next fiscal: ICRA
capacity expansion and localisation, including electric vehicle (EV) parts, ratings firm ICRA said on Thursday. The sector is also expected to invest in capacity enhancements and upcoming regulatory changes.
Trump-Modi Meet
The mega MIGA, MAGA plans of India's Modi and US' Trump
Trump says India has more tariffs than others
Trump's 'golden rule' for imposing reciprocal tariffs
«ICRA's interaction with large auto component suppliers indicates that the industry is estimated to spend Rs 15,000-20,000 crore in FY2025 and another Rs 25,000-30,000 crore in FY2026,» Vinutaa S, Vice President and Sector Head, Corporate Ratings, ICRA Ltd said in a statement.
The incremental investments would be made towards new products, product development for committed platforms and development of advanced technology and EV components, apart from capex for capacity enhancements and upcoming regulatory changes, she added.
The rating agency said it expects the revenue growth of the Indian auto component industry (represented by a sample of 46 auto ancillaries with aggregate annual revenues of over Rs 3 lakh crore in FY2024) to ease to 7-9 per cent in the ongoing fiscal and 8-10 per cent in the next financial year (FY2026), from the highs of 14 per cent in FY2024.
«Demand from domestic Original Equipment Manufacturers (OEMs), which constitutes over half of the industry revenues, is estimated to grow by 7-9 per cent in FY2025 and 8-10per cent in FY2026,» Vinutaa S stated.
Artificial Intelligence(AI)
Java Programming with ChatGPT: Learn
