Fall in ₹, Win Some, Lose Some for Auto Industry

While exporters benefit, import-dependent firms expected to struggle

- Sohini Das & Shine Jacob

For India's automobile industry, the depreciation of the rupee against the dollar is expected to be a mixed bag. Export-driven domestic manufacturers are likely to benefit, while companies reliant on imports, including electric vehicle (EV) makers, luxury carmakers, are expected to be affected the most. However, experts suggest that an immediate impact on components is unlikely, as most imports are insured, with some covered by long-term contracts that shield them from currency fluctuations.

This depreciation is advantageous for firms like Bajaj Auto, which exported 1.37 million two-wheelers and commercial vehicles from April to November, and Maruti Suzuki, which posted a 21 per cent rise in exports—247,496 units from April to December compared to 204,327 units during the same period last year. Other export-focused players are also expected to benefit.