NEW DELHI, Sept. 25 -- Auto component makers are facing a double whammy of subdued demand and covid-induced production restrictions. The Automotive Component Manufacturers Association of India (ACMA) pegged the industry revenue fall at 11.7% last fiscal year. Hit by falling sales, automakers curtailed orders to auto component suppliers. According to the Society of Indian Automobile Manufacturers (Siam), automobile production dropped 14.7% in FY20.
With automobile industry sales estimated to fall by about one-fifth in the current fiscal year, revenues of the auto component industry may also shrink. Icra Research Services projects 14-18% decline in FY21. Brickwork Ratings, too, estimates a similar fall in revenue.
Noticeably, revenues of au...