Auto Component Sector Report
Driving out of uncertain times
The last three years have been dramatic for the automotive sector worldwide. While the manufacturers in India did not have to go through the huge loss of sales, it is true they were under severe profit pressure. And the growth that was taken for granted did not seem to be certain any more. The downstream component sector also went through the same period of uncertainty.
To gain deeper insights into how the Indian component sector handled the recession and if there are lessons that can be learnt, Deloitte Touche Tohmatsu’s (DTT), India’s Manufacturing Group developed, “Auto Component Sector Report: Driving out of uncertain times”. The report includes an analysis of the financial and operational performance of a sample of auto component companies over three years (2007, 08 and 09) which represented periods of growth, slow down and the coming out of the recession. This analysis shows the manner in which investors viewed the sector, how companies managed their strategy and operations, and therefore the lesson the component manufacturers can learn as they are confronted with reasonably strong demand growth.
In addition to the industry analysis, the report presents benchmarks from each of the key sub-sectors in auto component business for companies to compare their performance with that of their industry peers. From a performance improvement perspective, it also sets out a continuum of processes and initiatives that best manufacturing companies seem to adopt to sustain profitable growth.