Auto component industry in India is not doing well now. But few years ago some of the financial experts forecasted a rosy picture for this segment and reported that global auto majors like General Motors, Honda, Mercedes etc will outsource their components requirements to India. What then really went wrong for this industry?
The economic slow down of 2008, which sent the world economy , especially the US economy,to a tail spin in 2008, is the reason for the poor performance of the auto component sector. The slow down in growth rate in 2010-11 is also attributable to the economic woes in the US and the Eurozone countries.
The automobile export markets in the US as well as the European countries have been badly hit by the slowing economy in those regions. Moreover, the production of automobiles in the US and the european countries, also has taken a beat because of poor demand.It would appea ...more