Auto ancillaries zooming

Today, the star of the day is most certainly the auto ancillary sector. Almost the entire jing-bang – Mahindra CIE, Sterling Tools, Rane (Madras), Rane Brake Lining, Rane Holdings, Rane Engine Valve, Igarashi Motors (India), Sundaram Brake Linings, India Nippon Electricals, and Lumax Auto Technologies …all are up very strongly in the green.

The entire sector is up and about in hopes that very soon the Govt will announce the ‘scrappage policy.’

The Road Transport Ministry had prepared a draft note on scrappage policy for vehicles older than 15 years in September this year. The rumour doing the rounds is that it will get approved soon as it has been tabled in the Parliament last month.

The idea behind the scrappage policy is to encourage automobile manufacturing activities in the country and help India become an automobile manufacturing hub.