The Indian forging industry is concerned over the high costs of steel and the emergence of electric vehicles that will limit the demand for forging-based components.
“The auto industry achieved the 10-lakh sales mark between July and September. This is encouraging news for the Indian forging industry, as we primarily serve the Indian automotive industry, which accounts for 70-80 per cent of forging production,” said Vikas Bajaj, president of the Association of Indian Forging Industry (AIFI).
But the volatility of steel prices are a cause for concern. “While volaitilty was unavoidable due to global trends, a more prudent and balanced approach would have been preferable for the business. We will need to monitor how the economy performs generally, as well as how inflation and interest rates move in the future,” Bajaj said.
