Indian foundries are reporting that business is returning - but not from U.S. or European companies. The growth has come from their own automotive industry and the demand for spare parts. One newspaper reported that foundries have increased their output 55% to 60%. The demand is driven by a number of new models being introduced to the country and low interest rate loans.
The industry reports, however, that they are still operating at under 70% of capacity.
The filling of capacity bodes well for North American and European foundries. A lack of capacity in India will force customers to buy locally.
This picture shows in part why U.S. and European foundries have trouble competing. How many foundries in Western countries could operate this way?