Will Japan crisis leave dent on Indian auto ancillary co's?

The Japanese crisis is likely to affect India's auto ancillary space reports The Economic Times. Local ancillary firms import components as well as finished products from Japan to sell in India. The Japanese disaster is expected to restrict supply and lead to a delay in shipments.

The newspaper quotes credit rating and research agency ICRA saying that almost 50% of the critical components going into passenger cars and 58% of inputs for two-wheelers made in India come from Japan. The paper further states that Indian ancillary firms maintain a sufficient inventory that will allow them to tide over the impact of the Japanese crisis for the quarter ended March 31 and possibly, even the three months to June 2011. Source: The Economic Times