The auto-ancillary was the best performing sector among the intermediate goods.

Different segments of the sector such as bearing, casting, fasteners, batteries and tyres
have grown in a range of 25-40%.
During the June quarter, global automobile majors have announced major investment
& domestic automobile companies such as General Motors (GM) and Honda in
fragmented auto-ancillary sector. Global majors are in a very critical condition; they
are loosing their market share because major automobile companies are being
attracted by India, China, & Taiwan. During first quarter of FY07, exports of
automobile components grew around 25% compared to the previous quarter on a YoY
basis. And exports registered a growth at around Rs 2833 crore compared to around
Rs 3530 crore in the corresponding quarter of FY06. The main reason for boost in
export is that the nature of the customer base of overseas market has been undergoing
major change. Indian companies are transforming into principal suppliers for the
Original Equipment Manufacturers (OEMs) from the after sales market or
replacement market. During that quarter, production of autocomponents increased by
15% YoY. And the result came out so far in this quarter is, Shanthi Gears, witnessed a
jump in net profits for the quarter ending in September, 2006. During the quarter, the
company witnessed a jump in NP at 43.45%, Sales for the quarter rose 31.90%
compared with the corresponding quarter, a year ago. The company has facilities for
manufacturing patterns, centrifugal castings of phosphor bronze rings, ferrous
castings, aluminum castings, heat treatment, forging, fabrications and cutter
manufacturing in-house which constitute the major raw materials for gearboxes.
Automotive Axles reported marginal improvement in the net profits for the quarter
ended June 30, 2006. During the quarter, the company reported a 2.30% rise in profits
and Sales for the quarter rose 35.15% compared with the corresponding quarter, Y-o-