Auto parts units back in fifth gear after the slowdown

The Indian auto components and accessories sector, which was hit hard by the recent economic slowdown, is again moving ahead in fifth gear, according to the findings of a survey by the IndiaMART Research Unit (IRU). IndiaMART is an online business-to-business marketplace.

About 70.9 per cent of auto components and accessories manufacturers – in which micro, small and medium enterprises (MSMEs) have a significant presence – felt that the market had progressed since last year, 8.6 per cent had a negative view, and 20.4 per cent felt that they had not seen any change compared to last year.

Respondents found that consumer sentiment had improved when compared to the previous year. About 60.2 per cent of respondents found an average improvement in consumer sentiment, 22.6 per cent found the improvement beyond expectations, and 17.2 per cent felt that consumer sentiment is still negative.

However, the MSMEs in this space continue to reel from a liquidity crunch. This was evident from the fact that 62.4 per cent of respondents wanted liquidity to be improved and lending norms eased. As for order books, about 60.2 per cent claimed that their order books were balanced, 22.6 per cent found them strong, while 17.2 per cent said that they remained weak.