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Chennai: Rane Brake Linings Ltd, engaged in the manufacturing of auto-components including disc pads and brake linings, has projected a sustained growth momentum in the automotive industry during the current financial year, despite minor headwinds in the form of rising interest rates, the company said. Adoption of electric vehicles is expected to accelerate in the coming years as electric vehicles become more cost competitive backed by supportive government policies, enhanced charging infrastructure, and consumer willingness to move towards clean and sustainable mobility solutions, Rane Brake Linings noted.

“The introduction of vehicle scrapping policy for scrapping and replacing old vehicles is likely to aid the growth of the industry.” Rane Brake Linings said in its annual report.

On the opportunities and challenges, the company said the automotive industry remains well poised to ride strong growth momentum as the industry focuses on reducing reliance on imported products and working towards developing a strong domestic supplier ecosystem.

“In order to remain relevant and stay ahead of the curve and establish the country as a global auto component manufacturing hub, it is equally important to make investments in technology and work towards fully digitalizing manufacturing and non-manufacturing operations,” the company said.

Observing that there have been positive factors for the sector, it said supply chain constraints leading to a shortage of chips, high cost of raw material, increase in logistics cost, and rising fuel prices could impact growth of the automotive industry.

“..implementation of new regulations to meet the stringent second phase of BS VI emission norms has increased the cost of the vehicles, and this coupled with the global recessionary trend and geopolitical tensions could impact the growth of the industry,” it warned.