Most improved things can be improved

We are into the second half of the fiscal year 2019-20 with enough and more learnings from the first half of the fiscal, to help us propel in the direction planned. It is also true that it is hard to forecast the onslaught of discontinuities that hit the sector. For instance, the decline of auto sales was weighed down by the micro and macroeconomic factors. The combined onslaught of the liquidity crunch rendered NBFC’s helpless and the hike in input costs meant the costs had to pass on to the consumer. Growth in the auto component industry declined from 18 per cent in 2018 to 14.5 per cent in 2019. Lack of clarity on the EV policy did not help either. On top of it, the weaker consumer sentiment hit the industry the most. The industry de-growth was pegged at (-) 10.1 per cent for the first half of the fiscal.

Starting over is possible. Here’s hoping that the new year brings with it a new wave of optimism. With the transition to BSVI and implementation of safety norms, the component industry must look forward to playing its part and lead value-additions. The answer could well lie in maximising product modularity, improving economies of scale, embracing a zero-defect culture. The need of the hour is to trim the fat and focus on a revenue-driven product strategy. Continue to collaborate for enhancing capabilities, increase investments in R&D and embrace digital. It is time to turn disruption into growth by improving things that we have improved.

Good wishes from Team ACI as you begin the new year!