Auto Production Has Taken A 25% Hit Since January, Says GNA Axles
The auto ancillary company expects the slump to continue in the first quarter of financial year 2019-2020.
GNA Axles Ltd. is facing a slump in domestic demand since January as automakers across the industry—including Maruti Suzuki India Ltd. and Ashok Leyland Ltd.—have slashed production by 20-25 percent, according to its President and Chief Executive Officer Ranbir Singh.
Automakers saw a drop in sales from 7-10 percent since the third quarter and that has translated into lower demand for auto ancillaries, Singh told BloombergQuint.
That, however, has not affected the company’s top line. “50 percent of our dependency is on exports for North America, Europe, Asia and South America. So our top line is not affected,” he said. “We are compensating the loss in sales from domestic market through exports.”
Singh expects this pressure to wear off for the tractor segment starting April, owing to the harvesting season. Other segments such as auto and commercial vehicles, however, will continue to see a slump in the first quarter of financial year 2019-2020, he said.
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