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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 ...
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