Auto parts-makers trim output as demand skids

After seven consecutive years of good growth, auto component majors have begun cutting production by over 25-30%. The move is expected to impact the bottomlines of the industry, which is facing a bleak future because of output cuts by major automobile companies.

The worst-affected are those with a large exposure to the commercial vehicle segment. Lack of finance and a large inventory stockpile have forced truck majors to sharply cut production by more than 50% of medium and heavy commercial vehicles in the wake of slowing demand. Passenger car makers are also adjusting production to demand. However, October saw a slower retail sales in the passenger car segment. More
Courtesy: economictimes.indiatimes.com

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