The Indian auto components industry is bracing for a slowdown, with revenue growth expected to taper to 6-8% in the current and next financial year, according to a CRISIL report. The deceleration is attributed to weakening demand and sluggish global markets. In response, industry leaders are pursuing diversification strategies to sustain growth and mitigate the impact.
RSB Group, a leading automotive component manufacturer, has noted a 15% slowdown in the commercial vehicles and construction equipment sectors, driven by reduced infrastructure investment. Recognising the industry’s dependence on government spending and GDP growth, the company is shifting focus to international markets.
RSB is leveraging its presence in Mexico to drive exports from India, targeting exports to contribute at least 20% of its turnover in the next financial year. Additionally, the company is exploring strategic acquisitions and diversifying into sectors such as agriculture, railways, and defence.
“To mitigate the impact of the current slowdown, we are committed to expanding our global footprint and strengthening our technological capabilities. These efforts will ensure sustainable, long-term growth,” said S K Behera, vice-chairman of RSB Group. The company aims to achieve a revenue target of approximately ₹10,000 crore within the next three to four years.
Kinetic Engineering is addressing the slowdown by diversifying its market base and integrating new technologies. Traditionally focused on exports to the United States, the company is now engaging with European clients to broaden its reach.
“We are proactively diversifying our markets to counter the recent deceleration in the auto components industry. With a focus on European markets and emerging opportunities in the two-wheeler and EV segments, we are positioning ourselves as key players,” said Ajinkya Firodia, vice-chairman of Kinetic Engineering.
The company is also investing in a nylon coating plant in India, aiming to localise a process previously outsourced to the US. This initiative is expected to enhance domestic capabilities and reduce costs.
Trinity Touch, a provider of industrial electrical solutions, is navigating market volatility by diversifying its customer base and expanding into emerging EV markets. The company recently secured IATF certification and is targeting two-wheeler manufacturers with type-6 charging solutions.
“By leveraging our IATF-certified lines and exploring new customer segments, we aim to strengthen our foothold in the EV market. Our efforts to localise production and optimise efficiency will ensure resilience against market fluctuations,” said Ishaan Parwanda, director of Trinity Touch. The company plans to expand Combined Charging System 2 supplies for oil marketing companies by 2025.
EV WORLD | German Auto Industry Battles EV Shift and Global Competition
