By G Balachandar Mar 01 2012 , Chennai
Despite changing growth patterns in the vehicle sector, auto parts industry is forecast to register a decent growth of 8-10 per cent in the domestic market for the present financial year.
“The fourth quarter is likely to be decent, as in some segments especially commercial vehicles the fourth quarter is always the strongest quarter. There is some growth in the passenger car segment in the fourth quarter especially given the poor showing in the third quarter. However, the agricultural tractor segment is showing some signs of slowing down in the fourth quarter,” Srivats Ram, managing director of Wheels India and former president of Automotive Component Manufacturers Association of India (ACMA) told Financial Chronicle.
In the recent past, the passenger vehicles was under some pressure, while light commercial vehicles including small commercial vehicles, tractors and two-wheelers did well and recorded good growth.
“The performance of the vehicle industry comes to the auto component industry as a 'mixed-bag'. We expect the overall growth for the auto component industry to be in the range of 8-10 per cent in the present financial year,” Vinnie Mehta, executive director, ACMA said.
“The medium & heavy commercial vehicle (M&HCV) segment recorded a volume growth (Y-o-Y) of six per cent each in Q1FY12, and Q2FY12 and 11 per cent in Q3FY12. While it may appear that the growth in the M&HCV segment picked up well in Q3FY12, it must also be noted that the corresponding period last year ie, Q3FY11 was relatively weak given the pre-buying that had happened in Q2FY11 in view of the scheduled change in emission norms from October 2010. Thus, volume growth of the M&HCV segment is unlikely to be in double digits in Q4FY12 (the growth was five per cent in January 2012). LCV segment will continue to post strong double digit growth,” said Subrata Ray, senior vice president – corporate ratings, Icra said.
Volumes in the passenger vehicle segment are to gain traction from Q4FY12 onwards as most of the concerns related to supply constraints (Maruti Suzuki labour unrest, Thailand floods) are now behind the industry. While the high base of Q4FY11 and the continued consumer scepticism on demand front, may still restrict growth in Q4FY12 and it is less likely to be as strong as it was in FY10 and FY11. However, performance in Q4FY12 will be better than the preceding quarters of this financial year, Ray added. Two wheeler industry is to report a volume growth of 14-15 per cent.
(Source : http://www.mydigitalfc.com/news/automobile-components-industry-see-stable-growth-965)
Despite changing growth patterns in the vehicle sector, auto parts industry is forecast to register a decent growth of 8-10 per cent in the domestic market for the present financial year.
“The fourth quarter is likely to be decent, as in some segments especially commercial vehicles the fourth quarter is always the strongest quarter. There is some growth in the passenger car segment in the fourth quarter especially given the poor showing in the third quarter. However, the agricultural tractor segment is showing some signs of slowing down in the fourth quarter,” Srivats Ram, managing director of Wheels India and former president of Automotive Component Manufacturers Association of India (ACMA) told Financial Chronicle.
In the recent past, the passenger vehicles was under some pressure, while light commercial vehicles including small commercial vehicles, tractors and two-wheelers did well and recorded good growth.
“The performance of the vehicle industry comes to the auto component industry as a 'mixed-bag'. We expect the overall growth for the auto component industry to be in the range of 8-10 per cent in the present financial year,” Vinnie Mehta, executive director, ACMA said.
“The medium & heavy commercial vehicle (M&HCV) segment recorded a volume growth (Y-o-Y) of six per cent each in Q1FY12, and Q2FY12 and 11 per cent in Q3FY12. While it may appear that the growth in the M&HCV segment picked up well in Q3FY12, it must also be noted that the corresponding period last year ie, Q3FY11 was relatively weak given the pre-buying that had happened in Q2FY11 in view of the scheduled change in emission norms from October 2010. Thus, volume growth of the M&HCV segment is unlikely to be in double digits in Q4FY12 (the growth was five per cent in January 2012). LCV segment will continue to post strong double digit growth,” said Subrata Ray, senior vice president – corporate ratings, Icra said.
Volumes in the passenger vehicle segment are to gain traction from Q4FY12 onwards as most of the concerns related to supply constraints (Maruti Suzuki labour unrest, Thailand floods) are now behind the industry. While the high base of Q4FY11 and the continued consumer scepticism on demand front, may still restrict growth in Q4FY12 and it is less likely to be as strong as it was in FY10 and FY11. However, performance in Q4FY12 will be better than the preceding quarters of this financial year, Ray added. Two wheeler industry is to report a volume growth of 14-15 per cent.
(Source : http://www.mydigitalfc.com/news/automobile-components-industry-see-stable-growth-965)
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