Indian Car Parts Manufacturers Careful Of Committing After Recession

The Indian car sector after a of years of slump is now seeing an unparalleled development, all in a span of two years. In 2008, amid downturn, the automobile producers had to reduce production, embrace cost-cutting measures, lower costs and do lay-offs in order to cope with the decline in automobile sales. Article recession, around mid-2009, the industry started witnessing development and this year it is back on track and is growing with a massive demand for vehicles from the domestic as well as global markets.The vehicle industry in India accounts for 4 per cent of the GDP and is growing four times as rapidly as the economy. This expansion has also generated the growing of ancillary industries like steel. A few places are also making inroads into the place and be described as a area of the growth options that sector presently offers. Media studies declare that Chinese organizations like Shanghai Automotive Industry Corporation has now joined the Indian industry using its part order and stake keeping generally Motors Indian concern. Another Chinese automobile company "Foton" is also researching the feasibility of entering the Indian market.Media stories also suggest that the increasing automobile sector in India is now confronted with a new difficulty - that's of scarcity of automobile parts 240sx turbo exhaust. More requirement and less supply, which includes set the car organizations set for another concern. How to meet the existing requirement? The firms are in a problem on whether to use the current method of getting automobile parts to supply existing need of automobiles or use new models to be manufactured by these parts. The product life that's decreased over the years has also made the job difficult for automobile firms and they will have to target on new launches to beat the opposition in the market.Any how, the wait for any new car is getting longer due to the lack of automobile parts produced by Indian vendors. Companies are unable to deal with the increase popular and the automobile delivery has been an extended delay to the consumer running from one month to 6 months and also to one year in a few cases.The purpose automobile firms place for this is that they are not getting enough offer from Indian automobile parts suppliers and hence the production has to be slowed down. According to specialists from the, the parts manufacturers have used 1 / 2 of what they must invest to meet with the need from Original Equipment Manufacturers (OEMs) and they're not ready to invest more in technology and increase the existing volume of parts production.On another hand, the automobile parts manufacturers have another story to inform. They're apprehensive in committing after being caught off guard in the aftermath of international meltdown in 2008 when they experienced losses due to drop in sales. They are also oral of not getting any intimation from automobile companies to decrease the production of automobile parts due to decline in sales.The current situation has brought to a growth in import of automobile parts from Chinese companies, which is currently growing at a much faster rate than the exports of automobile parts from the India, which is again isn't an excellent news for the domestic industry.Possible alternative to the current issue is that the parts manufacturers in India need to develop their catalog and match the increase in demand of the OEMs, they need to invest more in technology and structure but at the same time the automobile companies need to ensure that they apprise the parts manufacturers of any decline in income in advance so that parts manufacturers may reduce the production and promote the current stock. These companies also need to ensure that earlier transaction for parts is created so that the money can be used as investment in new technology and achieving the rise in demand.