Stocks of top 10 auto components shed 21% in 6 months on demand slowdown

Replacement market helped battery makers do better than other segments in the June quarter

Auto component companies have been one of the worst-affected segments of the slowdown in the auto industry. Stocks of the top 10 auto components have shed about 21 per cent over the last six months as compared to the 13 per cent loss for the peer index BSE Auto index. The Sensex over the same period was up 4 per cent.  

With automakers cutting on days of production to align their inventory of goods, the off-take of goods from the component makers has been affected. Analysts said during the slowdown, automakers typically squeeze their suppliers. 

This impacts the latter’s profitability.