The Federation of Automobile Dealers Associations (FADA) has said it wants average margin on sales of auto parts to go up to 5 per cent from 2.5 per cent at present. “The average margin now is not good considering the current market situation. Auto Parts Manufacturer should think about increasing it up to five per cent. In a recent survey by JD Power it the current situation is reflected in that also, where it was found that around 56 per cent auto dealers were making loss and 10 per cent planning to quit the business.
In other parts of the world, the profit margin floats around 15 to 20 per cent, but this is very low in India if compared to that figure,” and it is one of the reason for Auto Parts dealers to demand for higher margin from the Auto Parts Supplier.
Reviewing the current market scenario many big names of the auto parts industry has said that Manufacturers of Auto Parts should hike margin for dealers to make it a sustainable, profitable and viable business. Dealers in big cities are having huge pressure of increased rentals of showrooms, and the labor cost is also on the higher side.
The situation is not looking good with country's automotive supply chain is also likely to get affected due to various factors, including escalation of costs to supply chain operations and shortage of professionals, a study has revealed.
With the sight of relive the auto Parts industry released one of the few positive data points this month. After nine months of declining sales, August saw a 15 per cent jump over August 2012 in car sales. Overall, according to the Society of Indian Auto Parts Manufacturers, passenger vehicles, commercial vehicles (CV) and two and three-wheedlers combined saw a healthy growth.
Browse the listing of leading Exporters of Rubber Molding Press, Road Construction Machine Suppliers, Fly Ash Brick Making Machine Supplier, CLC Brick Making Machine Manufacturer, Industrial Blowers Manufacturers and many more by the medium of B2B Portal like TradeXL.
In other parts of the world, the profit margin floats around 15 to 20 per cent, but this is very low in India if compared to that figure,” and it is one of the reason for Auto Parts dealers to demand for higher margin from the Auto Parts Supplier.
Reviewing the current market scenario many big names of the auto parts industry has said that Manufacturers of Auto Parts should hike margin for dealers to make it a sustainable, profitable and viable business. Dealers in big cities are having huge pressure of increased rentals of showrooms, and the labor cost is also on the higher side.
The situation is not looking good with country's automotive supply chain is also likely to get affected due to various factors, including escalation of costs to supply chain operations and shortage of professionals, a study has revealed.
With the sight of relive the auto Parts industry released one of the few positive data points this month. After nine months of declining sales, August saw a 15 per cent jump over August 2012 in car sales. Overall, according to the Society of Indian Auto Parts Manufacturers, passenger vehicles, commercial vehicles (CV) and two and three-wheedlers combined saw a healthy growth.
Browse the listing of leading Exporters of Rubber Molding Press, Road Construction Machine Suppliers, Fly Ash Brick Making Machine Supplier, CLC Brick Making Machine Manufacturer, Industrial Blowers Manufacturers and many more by the medium of B2B Portal like TradeXL.
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