on the back of 11 slip in business for fy20 the auto component industry is bracing for yet another year of steep decline as both domestic and export demand remains sluggishmumbai bosch ltd the worlds largest automotive component makers indian arm has seen an order book erosion of 800 million for bs vi projects as covid19 pandemic pulled the market into deep endthe german auto component major which had secured rs 24000 crore of bs vi order book position before covid saw orders drop to rs 18000 crore the company informed the analysts at a q1 earnings callon the back of 11 slip in business for fy20 the auto component industry is bracing for yet another year of steep decline as both domestic and export demand remains sluggish in the q4 call of fy20 bosch had said it does not expect the market to regain the previous peak before fy24 so clearly it is going to be a long hard road ahead for the company advt reviewing the quarter bosch india md soumitra bhattacharya said economic recovery for this year looks weak and global gdp is expected to contract sharply for fy21 for india too it has been a challenging phase before covid the market was hit by a weakening economyindian economy is expected to see the sharpest contraction in 40 years and the gdp decline is expected around 45 the auto industry is likely to be pushed back in certain segments to 20092010 levels however we see some positive signs in industry and either gradual recovery or strong demand in tractors and two wheelers which is likely to sustain till the end of festive season added bhattacharyabosch was to execute rs 24000 crore orders in the coming five years that though significantly eroded can still be recovered with a recovery in the markets bhattacharya saidthe order book has come down to rs 18000 crore due to lower volume the order size is likely to again go up to the precovid period if the market improves further he hoped bhattacharya however did not define the timeline for recovering lost businessunder this challenging market environment the short term focus is on cost containment and conservation of cash said the senior management so for fy21 the company has halved its capex to about rs 200 to rs 250 crore advt industry production guidance for fy21 for bosch india after the march quarter results implies a decline of 1247 across the vehicle segment sales fell 64 to rs 992 crore in the june quarter following the sharp fall in volume in sales of vehicles due to lockdown as a result profit before tax without the exceptional item stood at rs 330 crore also read varroc engg will the momentum continue by ashutosh r shyam ketan thakkar etauto published on aug 21 2020 at 0732 am ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment