Tough days ahead for auto component manufacturers

A number of global auto giants such as General Motors, Ford, Daimler, Nissan, Toyota have been trimming their output and dismantling their plants due to the ongoing financial crisis. The Indian auto component industry had been busy working out plans to tide over the crisis as even the rupee depreciation is doing little to keep their businesses intact. For the past few months; the Indian suppliers are experiencing a 20-30 per cent drop in orders. Automotive Component Manufacturers Association (ACMA) has warned that if the slump in auto sales continued, exports could also be negative this year. On the contrary, imports are expected to grow owing to cheap components shipped in by Indian auto companies from countries such as China and South Korea. Component exports from India, that touched $3.6 billion in 2007-08, are estimated to be near flat in 2008-09.
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