Indian Economy News

Auto component suppliers to log 8-10% revenue growth this fiscal: ICRA

  • IBEF
  • November 15, 2022

Auto component suppliers are likely to have 8-10% revenue growth this fiscal year, supported by solid domestic OEMs and pent-up aftermarket demand, even as export challenges linger, according to research from credit ratings agency ICRA. According to ICRA, the industry grew by 29% year on year in the first half of the current fiscal, based on predictions from 49 auto ancillaries with annual revenues close to Rs. 3,000,000 crore (US$ 370.57 billion).

According to ICRA Research, auto component suppliers will gradually increase their CAPEX/investment outlay to 6-6.5% of operating income in FY2023 and 7-8% in FY2024, though the majority of these investments will be funded primarily through internal accruals. According to the report, the incremental investments will be focused on capability development—new product additions, product development for committed platforms, and development of advanced technological and EV components—rather than capacity expansion.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.