including Shriram Pistons Rings Several other companies have also been put on hold. NEW DELHI: The recession has forced India’s auto component industry to attract at least Rs 200 crore (about Rs 14.33 lakh crore). Auto Component Manufacturers Association.

Investments in capacity expansion have been put on hold, but the industry is still investing in some innovations, Jain said. He said the industry has invested around Rs 90,000-110,000 crore to transition to the stricter-VI emission standards in 2020 which came into effect on April 1 BS, of which the auto component industry has invested around Rs 30,000 crore.

“If we talk about $57 billion worth auto component industry, the general investment ratio is close to $17 billion:3 or 1:Jain said in an exclusive interview that this could generate additional revenue considering the growth rate of about 14% last year. “Jain said. The Economic Times says, “$2 billion in investments may be put on hold this year.” ‘

Jain said capacity utilization has fallen from 75-80% normal to 50-60%. He said this has resulted in about 10 people losing 10,000 jobs. “I would like to clarify that in 2018, year 9 we have almost reached the top of the moon. Manufacturing capacity utilization will peak at 90 percent and all businesses will grow. So we expanded capacity,” Jain said. “We went from the default threshold of 10,000 to 120, but unfortunately demand weakened, so 100 became 80. so we expect capacity utilization to be 50 to 60 percent, with 40 percent underutilized.”

I agree with this view. JBM, a leading automotive component manufacturer, has also announced a pause in investment. Arya, Group Managing Director, JBM “Due to lack of demand, we have stopped investing in all capacity expansion and are reducing shifts and rescheduling production.”

Including Shriram Pistons Several other Rings, including Rings The company has also suspended its investment program.

Jain attributed the development to the implementation of new safety standards, increasing the total cost of vehicle ownership and changes in the structure of the economy, putting pressure on travel. The Indian auto parts industry contributes 2.3% of domestic GDP and employs about 5 million people.