Due to the downturn in the global auto market, the auto component sector in Kanpur has been grappling with declining sales growth and narrowing margins. About a year ago, a majority of small and mid-sized auto part manufacturers and exporters in the city were struggling to stay afloat despite consistently dwindling business volumes.
Prior to recession, these firms managed to secure sizeable orders for spare parts and precision machined components from the manufacturing units of leading companies like Tata Motors' unit in Lucknow, Holland Tractors' unit in Noida and Tata plants in Jamshedpur and LML.The market bounced back again around last month with an increase in domestic auto sales. The favourable turn in market conditions prompted commercial vehicle manufacturers to resume production on a full scale and place bulk orders for auto parts. The demand revival has provided a glimmer of hope to the small-scale units in Kanpur.Nevertheless, we are hopeful that the Indian auto component industry would make a strong comeback as soon as the international auto market picks up momentum," reveals Aswini Zutsi, Regional Head (Western Region) Automotive Component Manufacturers Association of India (ACMA).
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