Auto exposure to drag Schaeffler's growth this year as vehicle sales drop

Localisation, industrial segment to offset some pressure

Despite a 13 per cent gain since the start of the month for the stock, the near-term outlook for Schaeffler India remains muted. The 74 per cent subsidiary of the Schaeffler group of Germany and the second-largest Indian player in the bearings segment faces headwinds in the automotive and industrial segments. 

Within the auto segment (43 per cent of overall revenues), a significant chunk comes from supplies to auto makers (original equipment manufacturers, or OEMs). With retail sales in the passenger and commercial vehicle segments falling sharply, the company’s revenues have been impacted.