As analysts predict a slowdown in the auto components industry in FY25, numerous companies are counting on the EV sector, expanding their markets, forming foreign alliances, and strengthening supply chains, to manage any potential slowdown in growth. Analysts predict that the auto components industry’s growth will slow to 5-7% in FY25, down from 14% the previous year.
Industry participants hope to grow operating margins, citing improved operating leverage, increased component value, and higher content per vehicle.
The sector remains exposed to swings in commodity prices and exchange rates, which could jeopardize margin stability. While the sector grapples with these obstacles, certain companies are taking proactive steps to alleviate the effects of slowing growth.
Given the market volatility, it is currently too early to anticipate actual growth for the year. However, our business operations and revenue expectations are unaffected, and we anticipate further growth. Our strategic development into new business areas, as well as our foray into the EV industry, will help us deal with any potential slowdown.
Although the car component sector will suffer a setback, the electric vehicle market is expanding due to consumer demand and government subsidies.
While the downturn is concerning, industry analysts feel that factors like as sustained replacement demand, increasing preference for premium vehicles, and future EV production growth may provide possibilities for growth and recovery.