Companies are releasing durable, high-performance models amid rising costs and competition.
India’s brake parts industry is confident of growth in coming months, encouraged by rising vehicle demand overseas and in the domestic market. Prospects in the latter are considered particularly attractive, with orders anticipated to surge as more two- and four-wheelers hit the roads of major metros, and tier 2 and 3 cities.
Nonetheless, suppliers face a number of challenges. Foremost among these is the climbing cost of steel and other raw materials, which is prompting manufacturers to raise prices. In coming months, some enterprises expect to implement adjustments of up to 10 percent to cover higher outlay.
With quotes projected to go up, competition from China and other low-cost production centers is also a concern.
Amid this business environment, India brake parts suppliers are sharpening their edge in manufacturing durable and high-performance models. Makers are not engaging in direct price war, believing that buyers are ready to pay more for quality products.
With this strategy, Delhi-based Asagi Auto Industries is optimistic of keeping sales on an upturn this year, especially in terms of exports.
The company manufactures brake drums, pads, lining and wire for two-wheelers. Egypt, East Africa and Sri Lanka are among the overseas destinations of its products.
Raj Automotive Industries also sees revenue remaining on the upswing in the months ahead despite the influx of low-priced models from China and other production hubs. In the 12-month period ending March 2011, the maker’s sales rose more than 30 percent YoY to $88,500.
Read the full report at Global Sources, a leading business-to-business media company and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through our e-magazines, trade shows and industry research.