The slowdown in auto sector has also hit the auto ancillary companies. Auto ancillary manufacturers are treading with caution while making their investment decisions.
Commenting on the slowdown in the sector, major auto ancillary marker Baba Kalyani, CMD, Bharat Forge Limited said,"You have to calibrate investments based on what market conditions are. Today, as I said earlier, in most of our business, if you're in the components sector, you make investments ahead of demand. We have already made the investments and we are recalibrating future investments. There is no sense in making investments today when you already have investments not being utilised. But our belief is that in the next 2-3 years this problem will be over.
He further added,” I don't even think it's a slowdown. I think it's a new reset of our economy and this is where we are going to start back from. If anyone thinks that we are going to get back to what we were 3 years ago in the next 6 months or 1 year, i don't think that's going to happen.
Raghupati Singhania MD, JK Tyre and Industries said, “We have been looking at de-risking the market. we have presence in Mexico and we are exporting out of there apart from catering to the domestic market. We are looking to opportunities in other emerging markets.
“I think this is a passing phase, maybe 18 months or so, and that much time I will take to set up new capacities. So by the time it's over, we should be there in the market place,” he said.