The auto component industry is expected to witness 20-23 per cent revenue growth in FY2022, aided by growth across segments and commodity pass-through, said a release issued by ICRA.
The growth, it said, would come in on the low base of last two fiscals and will look optically strong because of the exceptionally weak H1 FY2021.
According to ICRA, Indian auto component suppliers have reported healthy improvement in export volumes to Europe and USA. Exports have provided the much-needed support in Q1 FY2022 to auto component suppliers when the domestic demand nosedived due to the lockdown.
Sharp increase in commodity prices, supply chain disruptions partly arising from the global semi-conductor shortage, and premium freight are expected to weigh in on industry margins in FY2022, partially offsetting benefits arising from increasing operating leverage.
The Indian auto component industry is expected to report a 20-23 pc revenue growth in FY2022, supported by strong exports demand, and recovery in domestic OE and aftermarket segments. The growth would come in on the low base of last two fiscals and will look optically strong because of the exceptionally weak H1 FY2021.