“For auto component manufacturers, global uncertainties, including geopolitical tensions and supply chain disruptions, continue to impact export demand and input cost stability, while increased competition is exerting pressure on margins.” Adithya Jayakar, Joint Managing Director, UCAL Ltd.
“India’s manufacturing activity showed a modest improvement in April, with the Purchasing Managers’ Index (PMI) rising to 54.7 from 53.9 in March, according to data released by S&P Global. While the reading remains above the 50-mark that separates expansion from contraction, it signals one of the slowest growth rates recorded by the sector in nearly four years, pointing to a moderation in momentum.
The marginal improvement in PMI reflects a degree of resilience in India’s manufacturing ecosystem, and this is equally visible in the auto components industry, where steady OEM demand and replacement market consumption are supporting order flows. However, the fact that overall growth remains at a multi-year low indicates a cautious operating environment. For auto component manufacturers, global uncertainties, including geopolitical tensions and supply chain disruptions, continue to impact export demand and input cost stability, while increased competition is exerting pressure on margins. We are also seeing delays in client approvals, especially from overseas customers, and more calibrated inventory strategies by OEMs, which are stretching execution timelines. Sustained policy support, stable commodity prices, and easing global headwinds will be critical to restoring stronger growth momentum across the sector.”
The author is Adithya Jayakar, Joint Managing Director, UCAL Ltd.
