ICRA predicts India's auto component industry revenue growth to moderate to 5-7% in FY2025, with improved operating margins and significant capex for capacity expansion.

ICRA forecasts India's auto component industry revenue growth to moderate to 5-7% in FY2025 after a strong FY2024 performance. Operating margins are expected to improve year-on-year due to factors like better operating leverage and increased value addition. The industry will incur significant capex of Rs 20,000-25,000 crore in FY2025 for capacity expansion and tech developments. EV-linked opportunities, localization focus, and premiumization of vehicles are also expected to impact the sector.