India’s nine-month long demand slump in automobile industry - July sales dipping to its lowest level in 20 years - has affected the auto components and ancillary industries including petrochemicals triggering job cuts and production slowdown. This slowdown in the auto industry is also being reflected in the ancillary industries, which includes the chemicals and plastics segments.Leading Indian paints manufacturers Asian Paints and Berger Paints have noted a downward pressure on their automotive paints segment due to the slowdown.Paint manufacturers use crude oil derivatives such as titanium dioxide, ethylene glycol and plasticizers as raw materials.Chemicals, technical textiles and engineering plastics manufacturer SRF Ltd has seen a 11% decline in sales in its technical textiles segment in the first quarter of 2019-20 and expects the subdued demand from the automotive industry to continue in the near term, a company source said. The slowdown in the auto industry has also affected the demand for phenol-based derivatives, said Deepak Mehta, chief managing director of chemicals manufacturer Deepak Nitrite while reviewing the company’s first quarter results.
