2010 has started on a positive note for Indian auto players as well as auto component SMEs, vehicle manufacturers posting record sales in January this year. Sales of small and big cars, sports utility vehicles (SUVs) and multi-utility vehicles (MUVs) zoomed ahead the expected mark. Record vehicle sales has also made the small-scale auto parts suppliers, who source parts to major car manufacturers in India, hopeful of witnessing a significant jump in their revenues in the coming days.

Riding on high hopes

If January auto sales numbers are anything to go by, the Indian auto industry and auto component SMEs have enough reasons to rejoice. Robust jump in vehicle sales made by all major car manufacturers such as Maruti Suzuki, Mahindra & Mahindra, Tata Motors and General Motors among others, have provided a major fillip to the SME auto component makers in India.

Record auto sales in January 2010 despite the increase in car prices have definitely lifted the spirit of small-scale auto component makers and suppliers, who supply their products to auto majors, thereby making them optimistic that the positive trend will continue even during the coming months, said Vijay Sarda, a mid-sized dealer of Ford in Nanded, Maharashtra.

High auto sales figures in January have also spurred several small-scale auto component units to undertake capacity expansion plans with the expectation that the demand for auto parts would surge with the jump witnessed in auto sales.

Record vehicle sales will definitely lead to more business enquiries for small-scale auto part vendors as demand for auto parts will surge with the growing sales. Therefore, it will translate into higher sales and greater revenues for the SME auto ancillary sector in the near future. Meeting the increasing demand would also become a priority for SME auto component units said A Kumar, Proprietor of Yash Auto, a small-sized auto parts dealer in Kolkata.

Furthermore, given that the positive trend in auto sales is expected to continue in the coming months as well, the SME auto component manufacturers have ample reasons to look forward to the months ahead.

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