Indian Auto Parts Manufacturers Cautious Of Investing After Recession
The Indian automobile market after a of years of recession has become seeing an unprecedented development, all in an amount of two years. In 2008, amid downturn, the automobile manufacturers had to decrease production, undertake cost-cutting measures, lower costs and do lay-offs in order to handle the decline in automobile sales. Article recession, around mid-2009, the market began witnessing growth and this season it's back on track and is growing with a huge demand for vehicles from the domestic as well as global markets.The car field in India accounts for 4 per cent of the GDP and is growing four times as rapidly as the economy. This progress in addition has generated the growing of ancillary industries like steel. A few nations are also making inroads in to the country and be considered a section of the development prospects that industry currently offers. Press reports suggest that Chinese organizations like Shanghai Automotive Industry Corporation has recently entered the Indian industry having its part exchange and stake holding generally Speaking Motors Indian matter. Yet another Chinese automobile company "Foton" is also studying the feasibility of entering the Indian market.Media reports also suggest that the developing automobile sector in India is now confronted with a new difficulty - that's of shortage of automobile parts. More requirement and less present, that has put the auto companies in for another challenge. How to meet the present demand? The organizations come in an issue on whether to use the current supply of vehicle parts to offer current demand of automobiles or use these parts to manufacture new models. The product life that's reduced over the years has also made the task difficult for automobile companies and they now have to concentrate on new releases to overcome the competition in the market.Any how, the wait for any new car gets longer due to the absence of automobile parts manufactured by Indian suppliers. Companies are unable to handle the rise in demand and the car supply has been a long wait to the buyer running from one month to six months and also to one year in some cases.The reason automobile businesses put for this is which they aren't getting enough supply from Indian automobile parts suppliers and consequently the production has to be slowed up. According to experts from the market, the parts manufacturers have used half of what they should invest to meet the demand from Original Equipment Manufacturers (OEMs) and they are not prepared to invest more in technology and increase the existing volume of parts production.On the other hand, the automobile parts manufacturers have another story to tell. They're nervous in committing after being caught off guard in the aftermath of international meltdown in 2008 where the losses experienced losses due to decline in income. They are also noisy of not getting any intimation from automobile companies to lower the production of automobile parts due to decline in sales.The current predicament has led to an increase in significance of automobile parts from Chinese companies, which is now developing at a faster rate than the exports of automobile components from the India, which is again is not an excellent news for the domestic industry.Possible solution to the current problem is that the parts manufacturers in India need to build their inventory and match the increase in need of the OEMs, they need to invest more in technology and infrastructure but at the same time the automobile companies need to guarantee that they apprise the parts manufacturers of any decline in sales in advance so that parts manufacturers could reduce the production and sell the present stock. These businesses also need to ensure that earlier cost for parts is created so that the money can be used as investment in new technology and achieving the increase in demand Racing Muffler.