Volatile currency: Fall in rupee win some, lose some for auto industry

While exporters benefit, import-dependent firms expected to struggle

For India’s automobile industry, the depreciation of rupee against dollar is expected to be a mixed bag.

 

Export-driven domestic manufacturers are likely to benefit, while companies reliant on imports, including electric vehicle (EV) makers, luxury carmakers, are expected to be affected the most. However, experts suggest that an immediate impact on components is unlikely, as most imports are insured, with some covered by long-term contracts that shield them from currency fluctuations.

 

This depreciation is advantageous for companies like Bajaj Auto, which exported 1.37 million two-wheelers and commercial vehicles from April to November, and Maruti Suzuki, which posted a 21 per