Setco is largely insulated from the slowdown affecting the auto sector in general owing to its export and aftermarket businesses, said Shahane. “About 50 percent of our sales are to original equipment makers such as Tata Motors or Ashok Leyland. Our aftermarket and exports business remain steady,” Shahane.
The company’s stock rose 1.73 percent to INR215 on Thursday. Setco has a market cap of INR380 crore. Setco’s topline growth has been higher than that of the commercial vehicle industry, Shahane said.
India’s largest auto components maker Bosch Ltd too reports a dip in customer demand. On Wednesday, Bosch informed the markets of its plans to halt production activity for two days at its units in Bangalore and Jaipur in tune with slow-moving demand for its products. Bosch operates five units in India.
“…with a view to adjust production to meet the demand for products and to avoid unnecessary buildup of inventory, it is proposed to suspend the manufacturing operations at the company's Jaipur Plant from June 28, 2012 to June 30, 2012 and at the company's Bangalore Plant from June 29, 2012 to June 30, 2012,” said a Bosch release.
Bosch Ltd’s stock rose 1.53 percent to INR8767.95 on Thursday. The company has a market cap of INR27,530 crore.
Sluggish demand is forcing several Indian auto makers to revisit their monthly production plans.
Tata Motors, India’s largest automobile company, will suspend production at its Jamshedpur plant for three days beginning Thursday. The company halted production of commercial vehicles for a few days at its Pune unit earlier this month, PTI reported.
General Motors India is “constantly adjusting” production at its units in the western Gujarat and Maharashtra states. Toyota Kirloskar Motors, based in the southern Karnataka state, has “rationalized the production of its petrol cars”, and Fiat India is mulling shutting down its plant for a few days in July, the Hindu Business Line reported.