Turning disruption into growth

Concerted actions across all stakeholders could create a unified push for a thriving automotive industry

Discontinuities are disruptions on the evolution curve that alter the way an industry operates. The automotive component industry in India has been in a growth phase in the past decade with domestic turnover more than doubling and export turnover growing five-fold between 2010 and 2019, according to the Automotive Component Manufacturers Association of India (Acma). 

In recent months, we have seen discontinuities in this sector. Auto sales have declined driven by factors like the liquidity crunch in non-banking financial companies (NBFC), higher acquisition costs for vehicles owing to an increase in the costs of raw materials, insurance and finance; and weaker