Auto ancillary sector growth outlook positive, but near-term margin pressure likely: Report
New Delhi, July 8 -- India's auto bearings and ancillary sector is expected to witness strong medium-term growth, driven by robust demand across the automotive and industrial segments, although short-term profitability may face pressure from input cost volatility and transition-related expenses, according to a report by Centrum.
The report noted that the sector is benefiting from rising bearing content per vehicle, as modern vehicles require a greater number of specialised bearings. It also highlighted robust growth in automobile volumes across the passenger vehicle (PV), commercial vehicle (CV), and two-wheeler (2W) segments.
In addition, demand from the railway sector remains structurally resilient, while end-user industries such as w...
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