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India's GST cut boosted auto parts demand, but supply issues and temporary sales spikes pose challenges.
A recent GST rate cut in India has boosted auto component orders due to higher vehicle sales and improved consumer affordability, especially during the festive season, according to ASSOCHAM’s new president Nirmal K. Minda.
While demand from automakers remains strong, he cautioned the surge may not last beyond the holidays.
Ongoing shortages of rare earth magnets continue to disrupt production, prompting efforts to diversify supply sources to countries like Chile and Australia, and invest in magnet-free motor technologies.
Despite government incentives, supply chain challenges persist, but the sector remains optimistic about long-term growth through innovation and material reuse.
El recorte de GST de la India impulsó la demanda de piezas de automóviles, pero los problemas de suministro y los picos temporales de ventas plantean desafíos.