Ongoing lockdowns in many areas affect the auto parts industry

Mumbai, Ta. 21 July 2020, Tuesday

In the current financial year, the revenue of auto parts manufacturers is likely to decline by as much as 11 per cent as a complete or partial lockdown is still going on in the top eight districts of the country. Out of the total turnover of the country's auto industry, 5% turnover comes from these 7 districts.

The analysis conducted looked at sales of auto tires, engine oil, parts, brakes, electrical equipment and others.

On the one hand, sales of new vehicles are declining while on the other hand, the volume of vehicles running in kilometers is also expected to decline. Three-wheelers are expected to reduce the number of kilometers per kilometer by 4 per cent, while tractors and landing vehicles are expected to see a 4 per cent reduction.

May saw a 30 per cent decline in the use of commercial vehicles. The cost of replacing parts usually depends on how long the vehicle is running.

"Once the factories and trade houses are back to normal, the vehicles will be used in a normal way," Crisil said in a report. The situation is expected to deteriorate by September.