Companies are releasing durable, high-performance models amid rising costs and competition.
India’s brake parts industry is confident of growth in coming months, encouraged by rising vehicle demand overseas and in the domestic market. Prospects in the latter are considered particularly attractive, with orders anticipated to surge as more two- and four-wheelers hit the roads of major metros, and tier 2 and 3 cities.
Nonetheless, suppliers face a number of challenges. Foremost among these is the climbing cost of steel and other raw materials, which is prompting manufacturers to raise prices. In coming months, some enterprises expect to implement adjustments of up to 10 percent to cover higher outlay.
With quotes projected to go up, competition from China and other low-cost production centers is also a concern.
Amid this business environment, India brake parts suppliers are sharpening their edge in manufacturing durable and high-performance models. Makers are not engaging in direct price war, believing that buyers are ready to pay more for quality products.
With this strategy, Delhi-based Asagi Auto Industries is optimistic of keeping sales on an upturn this year, especially in terms of exports.
The company manufactures brake drums, pads, lining and wire for two-wheelers. Egypt, East Africa and Sri Lanka are among the overseas destinations of its products.
Raj Automotive Industries also sees revenue remaining on the upswing in the months ahead despite the influx of low-priced models from China and other production hubs. In the 12-month period ending March 2011, the maker’s sales rose more than 30 percent YoY to $88,500.
Located similarly in Delhi, Raj specializes in brake pads and shoes for light vehicles. It currently caters to the domestic market but plans to enter the international arena a few years down the line.
The supplier maintains an in-house QA team. It follows ISO 9001 guidelines.
Another company anticipating a sales increase in coming months, Joshi Auto Industries offers cast iron brake parts for heavy and light vehicles. The company expects good growth in the line amid the increased availability of two- and four-wheelers for different economic segments.
Models from this maker are suitable for vehicles bearing domestic and overseas brands, including those of Tata, Leyland, Mazda, Ford and Mercedes-Benz. Mauritius and Sri Lanka are among the products’ overseas markets.
Punjab-based Joshi’s production facilities comprise a foundry with two furnaces for casting. The company also employs special-purpose lathes to manufacture brake drums.
The enterprise is ISO 9001:2008-certified. It carries out chemical analysis and hardness testing in-house.
Note:This article was originally published by Global Sources, a leading business-to-business media company and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through our e-magazines, trade shows and industry research.
All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.
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