Mumbai: India's auto parts makers want the government's help to upgrade technology and spur investments to boost capacity, but analysts do not see the budget for 2011-12 to be tabled in parliament on February 28 taking much steps in this direction.
On the contrary, the expectation is that of a modest increase in excise duty on vehicles that may push up prices.
In 2010-11 thus far, component makers have witnessed an increase in sales, but going ahead rising input costs are seen weighing on margins. Adding to this is the lack of technological prowess, the companies say.
"We have got to be competitive, let's not get excited because our toplines are growing. Bottomlines are not growing in sync," said Arvind Kapur, Managing Director at Rico Auto Industries....more
05:13 PM, Feb 24, 2011