The fortunes of the auto ancillary sector are closely linked to those of the auto sector. Demand swings in any of the segments (cars, two-wheelers, commercial vehicles) have an impact on auto ancillary demand.
Demand is derived from original equipment manufacturers as well as the replacement market. Replacement demand accounts for close to 57 per cent of total demand, while OEMs account for 27 per cent, with exports accounting for the balance 16 per cent.
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