Business Daily from THE HINDU group of publications
Tuesday, Sep 02, 2008
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Business Daily from THE HINDU group of publications Tuesday, Sep 02, 2008 ePaper | Mobile/PDA Version | Audio |
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Automobile Components Industry & Economy - Automobiles Auto parts cos pin hopes on product development, future launches Most companies feel the current slowdown is a temporary phenomenon Lumax Industries says its order book is full up to 2010-11 Minda Industries says product development for future models is keeping it busy Priyanka Vyas New Delhi, Sept. 1 Auto component makers are not too worried about the current slowdown as their order books are overflowing with new cars being launched. Besides, work on new product development for future models going on in full swing and capacity expansion by domestic and global auto makers too is keeping their spirits high. Auto component companies say that while sales would remain flaccid for the next few months, it was likely to be a temporary phenomenon. “My order book is full up to 2010-11,” said Mr Deepak Jain, Executive Director, Lumax Industries. The company supplies automotive lamps to various makers including Maruti, Toyota amongst others. Similarly, Mr N.K. Minda, Chairman Minda Industries Ltd, part of the N.K. Minda Group admits “There is a slowdown. But work on product development for the future car models which would be launched in the next few months takes a lot of time, keeping us busy.” Industry officials cite a variety of reasons for being exuberant. The domestic auto component industry has matured over the years, attained more competence in cost cutting measures, product development and understanding the market, making companies better prepared to fight the current slowdown, commented Mr Jain. In case of Amtek Auto Ltd, which produces various engine parts, its hopes rest with the expansion of the powertrain facility under way by domestic and global car makers in the next few months. The company estimates the slowdown to prevail up to March and the market would catch up only by June. “Over the next two-three quarters we don’t see any significant change in the market scenario. Tata Nano is being launched in October. But due to the problems at Singur, volumes may pick up only by December,” said Mr Santosh Singhi, Chief Financial Officer, Amtek Auto. “However, by supplying forging and casting parts to engine assembly line of domestic majors, some of which are expanding and new facilities being set up by global auto makers would generate good business next year onwards ” he said. Q1 profits of auto parts makers take a beating Re, input costs hit auto parts export growth rate Auto component makers not alarmed over Chinese imports More Stories on : Automobile Components | Automobiles
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