World comes crashing down

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: country’s automobile industry growing at a CAGR of 11.7% during FY03-FY08 and auto components sector growing at a CAGR of 25.1% during the same period.

Among the developing nations, she adds, “The major automotive markets are India, China, Thailand and South Korea. Though Indian automotive industry is poised to perform better as compared to that in most of the developed nations, yet the former is at a concern to maintain competitiveness against other low cost countries (LCCs).

The Indian auto components industry is facing major setback due to slower domestic sales as well as low export demand from the US and Europe, the country’s two major and largest markets.

Though the situation may not tend to improve significantly, yet depreciating rupee against US dollars will result in some respite to the auto exporters.” Echoing similar sentiments Yezdi Nagporewalla, Head Industrial Markets, KPMG, India adds, “As regards the Big3, India is miniscule as a market for their final products. One aspect to watch will be the component space where Indian manufacturers supply to the Tier 1 & 2 suppliers of the Big 3. I expect a larger impact emanating form an overall sentiment and other parameters like credit etc, which will impact demand in India.”

Inputs from NYT