Auto parts cos planning to cut production

With auto makers cutting down production owing to demand slump, component manufacturers are also scaling down their output to prevent inventory pile up.

“Ours is an industry directly linked to the automobile manufacturers. If they are cutting down production, we also adjust our production as per requirement and regulate our output,” Auto Component Manufacturers Association (ACMA) President Arvind Kapur said.

He said many component manufacturers have “adjusted production so that there are no inventory pile-ups”.

While he did not quantify how much the production cut is in the component sector, Kapur said, “Thankfully, for the sector, exports have been growing, which has partially enabled the companies to offset decline in domestic demand.”