Domestic auto parts makers benefit from supply disruptions from China

While they have not been able to make a huge dent globally, their operations have grown with OEMs in India beginning to lean on them more heavily for supplies

Domestic auto-component makers have benefitted with original equipment manufacturers (OEMs) going for localisation and import substitution following frequent supply disruptions from China.

Indian automobile companies have been importing about 20 per cent of their requirements from China.

Ajinkya Firodia, MD, Kinetic Engineering (KEL), told Business Standard that Indian OEMs are gradually warming up to the idea of sourcing more locally. He added Chinese components cost about 20-25 per cent less on an average, and there is still some demand in the after-market. However, OEMs are gradually de-risking their production plans from frequent Chinese disruptions.

“We have made the axle and