Auto ancillary industry to witness excellent results for this quarter

Automobile industry in India enjoyed a remarkable 2010, with sales scoring high to 30 per cent. With the growth in the auto industry to be continued in the new year  the ancillary industries are also enjoying great demand and looks like they will too enjoy a great year ahead. It is being reported that excellent results are being assumed for this quarter sales in this splurging auto market.

As per the auto industry reports, it is being learnt that Indian automobile part manufacturers like Bharat Forge, Motherson Sumi Systems and Exide industries are expecting profits rising between 17 per cent to 70 percent. The reports also states that Bharat Forge, globally the second largest forgings manufacturer has witnessed a hike in quarter net profit of 72.6 per cent in the last quarter from October to December, and its sales reached to 71.3 per cent as per the poll. The company will release its sales figures by 22nd January.

It was mentioned in the reports that India is the second fastest growing auto markets globally owing it to the boost in the economy and consumers' will to spend. From April to December, 2010 (year-on-year) basis, the Passenger car segment registered a growth of 31.83 per cent whereas commercial vehicles recorded a growth of 34.08 per cent.

As per the report from the experts in the auto industry, Bharat Forge has a pass-on clause for its major contracts with various automobile manufacturers to make sure the company tides over the increasing raw material cost. Exide, the budgest auto and industrial battery maker in India, registered quarterly profits to 32.6 per cent and sales witnessed an increase of 30.3 per cent. Exide has grown leaps and bounds in three years as it has set up smelting and refining units in Banglore and Pune for lead. It contributes to almost 70 per cent of the raw material cost of the battery.

As per the analysis Motherson Sumi, the biggest name in India for wiring harness has showcased net profit of 17 per cent and just like Bharat Forge it has pass-on clauses with various automobile manufacturers. The wire manufacturer's sales increased to 16.7 per cent which can be majorly credited to increasing demand for passenger cars as this segment contributed the most in sales.

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