The global recession has shaken every industry including the auto industry. The crisis had a major impact on the car industry with inventory piling up and re-scheduled export orders.
But now the auto industry sees a ray of hope. This segment experienced a single digit growth with 6% in turnover and 5.5% in export earnings during 2008-09 against 20% and 24%, respectively in previous years. Many auto component manufacturers revealed that in the long run they have come across many ups and downs but this was the worst phase.
MD M. S. Kumar (Magal Engineering Tech Vice-Chairman), said, “honeymoon” is over. “All of us are on the surface of the water. Our nose could go either two inches above or below.”
The auto manufacturers had even build plants that would support the export but with the liquidity crunch, all the plans were shattered leaving them in crisis. Now they are concentrating on cost cutting and re-planning strategies.