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Auto component maker Sona BLW Precision Forgings Ltd (Sona Comstar) expects its annual investments, currently at Rs 500-600 crore, to rise as it scales up operations, with a focus on R&D, capacity expansion and new capabilities, its Managing Director and Group CEO Vivek Vikram Singh said. In an interview to PTI, Singh shared that the company will continue investing across all its three business lines, adding that it had introduced three new products during the September quarter. "Annual investment is currently around Rs 500-600 crore. This should increase as we grow over the decade," he said. Singh said investments would cover multiple areas, including R&D, capacity additions, capability additions and new processes, with the company focusing on developing entirely new products. According to the company's Q2 results release, the three products commercialised during the quarter were a helical limited slip differential for EVs, air springs for railway coaches and rear radar ...
The automotive component industry has around Rs 98,000 crore locked in inventory, of which Rs 29,000-39,000 crore could potentially be released by improving inventory management, according to a Vector Consulting Group report. The report said the potential working-capital release could include Rs 4,000-5,600 crore within the MSME ecosystem, which accounts for around 80 per cent of auto component manufacturers in the country. According to Vector Consulting Group's white paper, The Broken Flywheel: Building a Future-Ready Automotive Supply Ecosystem, firms adopting consumption-based replenishment approaches typically reduce inventory by 30-40 per cent, based on the consulting firm's implementation experience. The total sample size comprised 21 senior industry executives, with the data collection period from July to August 2026. The study also estimated that India's automotive component MSMEs account for approximately Rs 2.4-2.9 lakh crore in turnover. A 30 per cent improvement in ...
The revenue of listed auto ancillary companies grew at a compound annual growth rate (CAGR) of 11 per cent during FY16-26, according to a report by Equirus Securities. Sectoral revenues during the period rose nearly three-fold to about Rs 5 lakh crore during the period, according to the report. It noted that exports have more than tripled over the past decade and have emerged as an important contributor to industry growth alongside rising vehicle content and premiumisation trends. The sector entered FY27 with its strongest balance sheet position in a decade, it said, adding net debt-to-EBITDA improved to 0.18 times in FY26 from 0.49 times in FY22, aided by stronger cash flows, lower leverage and better working capital management. The report, titled "Ten Years of Growth, Three Lessons and Where to Look Next", which was released recently, analyses the performance of 52 listed auto ancillary companies and outlines key themes expected to shape the sector's growth trajectory over ...