Auto component industry to widen revenue streams

23 Jun 2022 CW Team

As Indian automakers pour in $ 5 billion of investment to manufacture electric vehicles (EVs), auto component producers seek to march in step by augmenting capital expenditure.

Auto parts makers include Minda Corporation, Sona Comstar, NEI Industries, Anand Group, Sansera, Lucas TVS, JBM Auto, Rane, Brakes India, JK Fenner, and Lumax announced plans to expand their capacity and create new skills to tap into the demand for EV parts.

According to ICRA's sample study of 49 large auto ancillary companies the auto component industry might devote about Rs 16,700 crore in the financial year 2023 for capital expenditure and about Rs 20,800 crore in the financial year 2024.

In this space, EV projects are expected to be around 25-30% of total investment, the research company added.

ICRA Limited vice president & sector head-corporate ratings said that they expect the Capex investments from the larger ancillaries to be around 6-6.2% of operating income in the financial year 2023. The recently announced PLI scheme would further contribute to boosting the Capex over the medium-term besides investments via new entrants in the EV segment.

Image Source

Also read: Delhi government to electrify all 62 bus depots

Infrastructure Urban

06 Jul 2026

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..