Auto components sector expected to witness double digit growth in FY22
According to news reports, automotive components manufacturing sector is expected to rebound and witness a phenomenal growth in FY22, after witnessing two years of double-digit decline in profit and revenue owing to the pandemic-induced slowdown and economic disruptions.
The sector will witness 21-23% growth in revenue along with higher operating margins due to the growth in top line and cost-cutting measures that are already in place, according to credit ratings firm Crisil Ltd.
The increase in demand from OEMs will enable growth in the automotive components sector, which could see a revenue growth of 21-23% next fiscal compared with de-growth of 13% and 8% in fiscal 2020 and 2021, as per the ratings firm.
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