- Steady increase in commodity prices a concerning factor for auto component industry profitability
- Demonetization impact short lived; industry to recover fully by March 17
- PV and M&HCV production grew by 11.8% and 4.2%, respectively despite much weaker domestic wholesale volume
- Indian auto component export has a high exposure on the USA and EU markets, which together accounted for 60% of total auto component exports from India.
- Operating margin in FY17 are likely to ease around 14.9%-15% level from 16% level in FY16.
- ICRA maintains 10-12% long term CAGR expectation for Indian auto component industry.
Enclosed entire report