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The automobile sector is one of the largest sectors in terms of revenue and is considered the bellwether of both consumer demand and the overall health of the economy. The sector, by virtue of its deep connects with several key segments of the economy, occupies a prominent place in the country’s growth canvas. Rising income and greater availability of credit and financing options have been the key growth drivers for the sector.
Before investing in automotive stocks, investors should understand how economic cycles affect auto companies and how these companies work to maximise profits and stay competitive through good and bad times. Investing in any stock requires careful analysis of financial data to find out a company s true worth. The analysis of a stock should be based on certain factors, including macroeconomic indicators, sectoral trend, government policy, competition, capital structure, operational efficiency, financial ratios etc. Besides, monthly sales data released by SIAM
Auto industry bodies recommend incentivising enhanced domestic value-addition, localisation
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Last Updated: Mar 05, 2021, 02:38 PM IST
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Synopsis
In their presentation, Ayukawa, who is also the MD & CEO of Maruti Suzuki India Ltd and Kalyani, the Chairman & MD - Bharat Forge Ltd, said the aspiration of the sector is to achieve two-fold growth in exports by 2025-26 with automobile manufacturers achieving exports of USD 19 billion and auto component makers touching USD 30 billion.
Agencies
Automobile and auto components industry bodies SIAM and ACMA on Friday recommended incentivising enhanced domestic value-addition and localisation to leverage on the USD 25 billion import substitution opportunity but said the production linked incentive (PLI) scheme should not cannibalise existing exporters by incentivising new players. In a presentation at the PLI event organised by Department for Promotion of Industry and Internal Trade (DPIIT) and Niti Aayog, Society of Indian Au
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