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Auto Component Production
Auto components major SKF India group, which has undergone demerger of its automotive and industrial businesses, plans to invest up to Rs 1,460 crore by 2030 across the two verticals, including capacity expansion and setting up of a new plant. The company expects the demerged industrial entity, SKF India (Industrial) Ltd , to be listed by November this year, subject to necessary approvals. The demerger of the industrial business has been completed effective October 1, 2025, with the National Company Law Tribunal (NCLT), Mumbai bench sanctioning the scheme, SKF India Ltd said in a regulatory filing. Under the demerger scheme, each shareholder of SKF India Ltd will receive one fully paid equity share of SKF India (Industrial) Ltd for every share held in SKF India Ltd, which will continue as the automotive entity, thereby preserving ownership while offering direct exposure to two complementary growth stories, the company said in a statement. SKF India (Industrial) Ltd will pursue grow
Facing potential production losses due to a shortage of rare earth magnets, the auto component industry body ACMA on Tuesday sought a national strategy on critical materials to secure electric vehicle production in the country. Terming the rare earth shortages as a major concern, Automotive Component Manufacturers Association of India (ACMA) President Shradha Suri Marwah said that the industry is agile and has started to work on alternative solutions. "The limited availability of rare earth magnets remains a concern, underscoring the need for a national strategy on critical materials to secure the future of EV and mobility manufacturing in India," she stated. Despite various geopolitical issues and supply chain challenges, the auto components industry reported a turnover of USD 80.2 billion for FY2025, a growth of around 10 per cent as compared with FY2024, Marwah stated. The industry grew at a CAGR of 14 per cent from FY20 to FY25, nearly doubling in size over a period of past fiv
Automotive component maker Tata AutoComp Systems on Thursday said it has formed a strategic joint venture with Mexico- headquartered Katcon Global to manufacture advanced composites for the North American market. Tata AutoComp, in a statement, said the venture will specialise in lightweight applications for passenger and commercial vehicles, agricultural tractors, off-road vehicles, and specialised non-automotive segments. A global supplier to the automotive industry, Katcon Global specialises in exhaust systems, thermal insulation and advanced materials components. The company operates with 11 manufacturing facilities and five technology centres spread across eight countries. The two companies already have an over-decade-long collaboration for exhaust systems and emission after-treatment solutions. In the venture, Tata AutoComp said, it brings technological leadership and customer relationships, while Katcon contributes operational excellence, regulatory expertise, and strong loca
Auto components maker Uno Minda Ltd on Wednesday reported a 17 per cent rise in consolidated profit after tax at Rs 210.8 crore in the first quarter ended June 30, 2024. The company had posted a consolidated profit after tax of Rs 180.17 crore in the same quarter of the previous fiscal, Uno Minda said in a regulatory filing. Consolidated revenue from operations in the first quarter stood at Rs 3,817.51 crore, as against Rs 3,092.66 crore in the year-ago period, it added. Total expenses in the quarter were higher at Rs 3,587.78 crore, as compared to Rs 2,906.79 crore in the same period a year ago. The growth in the quarter was driven by all product segments especially led by lighting, alloy wheels, switches, sensors and controllers, the company said. "Our journey towards becoming a global automotive technology leader continues to gain momentum as we deliver yet another quarter of robust performance, reinforced by our commitment towards innovation and customer satisfaction," Uno Min
The Red Sea crisis is likely to impact the margins of the auto component industry over the next few quarters amid higher container rates and shipping time, credit ratings agency ICRA said on Thursday, projecting a moderate growth for the industry this fiscal. Close to two-thirds of the auto component exports are made to North America and Europe, and one-third of the imports is made from these regions, as per the ratings agency. "The disruption along the Red Sea route has resulted in a surge in container rates by 2-3 times in YTD (year-to-date) this calendar year compared to CY2023, while shipping time has also increased by around two weeks," ICRA said. The operating margins are set for a year-on-year improvement of around 50 basis-points in FY2025, benefitting from better operating leverage, higher content per vehicle, and value additions, while remaining exposed to any sharp volatility in commodity prices and foreign exchange rates, it said. Also, the industry's liquidity position
Auto components maker Samvardhana Motherson International Ltd on Friday said it has raised USD 350 million (around Rs 2,920 crore) through the issuance of notes. The notes were issued by the step-down subsidiary, SMRC Automotive Holdings Netherlands BV (SAHN BV) backed by a corporate guarantee from Samvardhana Motherson International Ltd (SAMIL), the company said in a statement. The issue was oversubscribed six times with a peak order book in excess of USD 2.2 billion, it added. "The fund raised by way of issuance of notes marks return of the Motherson Group after 8 years to USD bond market and first-ever with a dual investment grade rating from two reputed international credit rating agencies -- Moody's and Fitch," SAMIL said. The issuance is debt neutral as proceeds from the same will be utilised to repay existing debt. The notes shall be listed on the Frankfurt Stock Exchange, it added. "The success of this transaction is a testament to the Motherson Group's adherence to its ..
Annual revenue growth of leading auto component manufacturing companies will come down to 5-7 per cent in the next fiscal due to moderation in domestic volumes and a drop in exports, rating firm Icra said on Tuesday. According to Icra estimates, its sample of 45 auto ancillaries, with aggregate annual revenues of Rs 2.7 lakh crore in FY23, is likely to grow by 9-11 per cent in FY24, driven by healthy domestic demand despite a high base and moderate growth in exports. For FY25, the growth is likely to be relatively lower to 5-7 per cent, with expected moderation in domestic volume growth and a weak outlook for exports, Icra said. It also noted that capex towards capacity enhancements and technological development resulted in higher investment in FY24, which is likely to continue in FY25. The industry is estimated to incur a capex of at least Rs 20,000-25,000 crore in FY2025, with incremental investments being towards new product additions, product development for committed platforms
The domestic auto component industry expects to log in double-digit sales growth in the current fiscal after having reported its highest-ever turnover in 2022-23, as demand is expected to remain robust. As per the Automotive Component Manufacturers Association (ACMA), the sector reported a turnover of Rs 5.6 lakh crore last fiscal, registering a growth of 33 per cent over Rs 4.2 lakh crore in 2021-22. In 2022-23, exports grew by 5 per cent to Rs 1.61 lakh crore while imports grew by 11 per cent to Rs. 1.63 lakh crore, it added. The aftermarket, estimated at Rs 85,333 crore also witnessed a steady growth of 15 per cent while component sales to OEMs in the domestic market grew by 39.5 per cent to Rs 4.76 lakh crore, ACMA said. "With significant mitigation in the supply-side issues of availability of semiconductors, input raw-material costs and logistics, the vehicle industry is expected to continue to perform well in FY24, which augurs well for the auto components sector," ACMA ...
Auto components maker Samvardhana Motherson International Ltd on Thursday said its arm Samvardhana Motherson Automotive Systems Group BV will fully acquire French entity Cirma Entreprise SAS at an enterprise value of 7.2 million euros (nearly Rs 65 crore). Samvardhana Motherson Automotive Systems Group BV (SMRPBV) has signed a binding undertaking to acquire a 100 per cent stake in Cirma Entreprise from Vinci Energies France, Samvardhana Motherson International said in a regulatory filing. Cirma Entreprise is into aerospace, shipbuilding and allied industries. The cost of acquisition is pegged at an enterprise value of 7.2 million euros, it added. On the rationale behind the acquisition, the company said Motherson will become a Tier 1 to Aerospace OEM (Original Equipment Manufacturer) and proximity to OEM would open further avenues for growth. Also, it will help in diversification to electrical wiring and interconnect systems (EWIS) for aerospace, shipbuilding and other allied ...