The global economic growth of the auto industry is dependent on first of all on the auto makers, the manufacturers of Automotive Stuff and the distributors of steering and suspension systems including components. The automotive sector is doing quite well particularly passenger vehicles and two-wheelers; however, good growth was not projected for the medium and heavy commercial vehicles (MHCV) because of the Goods and Services Tax and demonetization.
The first half of 2017-2018, was not too good for the MHCV segment but the swing in the 2nd half was positive. This scenario has helped the auto component industry. The MHCV segment is expecting a fairly good amount of pre-buy considering the changeover from BS-IV to BS-VI norms. Prices of vehicles will go up but 2018-2019 is expected to be a good year. The automotive industry will continue to perform reasonably well and customers are quite confident.
With the GST coming in, it is easier and more productive for large loads to be transferred to inter-city. With medium and heavy vehicles moving towards high tonnage and light commercial vehicles to lower tonnage, there will be a significant movement to hub-and-spoke models. Since more efficient vehicles can manage long distances and higher tonnage, the cost is expected to come down.
It will take much longer than 2030 for India to shift to electric cars. While everyone seems to go with the concept including the government, there are two factors that have to be considered. It is critical to look at the “well-to-wheel” life cycle and the environmental effect. The concept is not as environmentally friendly as everyone thinks particularly with smaller cars that accounts for 70% to 80% in India’s A and B segments. Besides that the materials to produce electric cars like lithium, cobalt and precious metals have to be imported.
Meanwhile, if you are looking for Automotive Stuff, there is a large selection waiting for you from performance parts, exterior accessories, lighting, interior accessories, audio and electronics including wheels and tires from top quality brands. When you purchase online, the price you see on the website is the price you will pay because there are no custom duties and brokerage fees.