: Forging industry reaches out to Ministry of MSME on auto sales slump #finance #StockMarketNEWS Forging industry reaches out to Ministry of MSME on auto sales slump\ New Delhi, 15 Nov (KNN) The Association

Forging industry reaches out to Ministry of MSME on auto sales slump #finance #StockMarketNEWS
Forging industry reaches out to Ministry of MSME on auto sales slump New Delhi, 15 Nov (KNN) The Association of Indian Forging Industry (AIFI), the apex body of the forging industry in India has expressed concerns with regards to high Steel Prices, and declining automobile sale, as it has hammered the Forging Industry in India.

The association wrote to Ministry of Micro, Small and Medium Enterprises, Prime Minister’s Office, Ministry of heavy industries, Ministry of Steel, and Ministry of Commerce and Industry, to urge the government on these matters.

The Indian Forging Industry primarily caters to the Indian Automotive Industry, which accounts for 60-70% of the forging production, with the auto sector witnessing the slowdown the forging industry has witnessed an average slowdown of 50% of the total capacity.

Indias auto sector, which grew at a rate of more than 10% in the early 2010s, is now struggling to stay in the green. Due to various factors such as semiconductor chip shortages, rising input costs, rising commodity prices, and rising fuel costs, total automotive sales in India have declined in double digits in the last two fiscal years (FY20 and FY21). Thus, the overall auto- components and forging industry have not seen an improvement in their order books.

The industry anticipated a rebound for the overall passenger vehicle market following the second wave of the COVID-19 pandemic. However, it is the supply, not the demand, that is likely to lead to longer wait times, which will have a long-term impact on consumer sentiment. Maruti Suzuki, Toyota, Hyundai, and Mahindra & Mahindra have already indicated that their vehicles will be more expensive in the coming months. As a result, the forging and auto component industries are anticipating a bleak festive season this year.

Mr. Vikas Bajaj, President, AIFI (Association of Indian Forging Industry) said, “The industry is still going through challenging times after the second wave. The sector faces new obstacles on a regular basis. The industry is currently concerned due to the lack of semi-conductor chips. It has an indirect impact on Indias forging sector. Additionally, customers are experiencing extended wait times, and the demand-supply imbalance may have an impact on automakers throughout the festive season. Furthermore, the rise in steel prices has harmed Indias forging industry. The basic requirement in forging industry is “STEEL” and the current price hike has disturbed the supply chain. If this continues to exist, the high steel prices will reach inflation levels more than what the country is currently witnessing. Additionally high raw material prices continue to be a challenge and high fuel prices continue to have an impact on customers and purchase decisions.

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