Pune: The Indian arm of the German auto components manufacturer ZF has said the slump in the automobile sector in the country started pre-pandemic, although green shoots have been visible since mid-2020, with regulations and pent-up demand starting to take effect.
“The drop in auto sales actually started from the second half of 2019, and then the pandemic happened. But if we look at sales from July 2020, we can see a V-shaped recovery. A lot of factors contributed to that, including pent-up demand, and the need for OEMs(original equipment manufacturers) filling in the pipeline owing to the shift to Bharat Stage-VI norms for emission standards. Our clients are also looking for the added value from our products, and they are also prepared to pay more for that,” said Suresh KV, the president of ZF India.
Suresh said its decision to indigenise a large part of its sourcing base helped the firm control costs over a number of years, especially during the pandemic.