Sounding a word of caution, Bharat Forge Ltd CMD BN Kalyani said that this decline in vehicle production was likely to continue in the second quarter of the current fiscal year. Production of heavy commercial vehicles has fallen by 11.23 per cent with sales during the April-June quarter coming down to 19,372 units compared to 21,548 for the same period last year.

Tractor production is down 29.95 per cent from 66,273 to 51,000 units. The LCV market has however, grown at 5 per cent. This has affected the company's growth projections. Domestic sales and income have remained stagnant at Rs 113.85 crore but the company has managed better performance on the export front with a 39 per cent growth in exports from Rs 27.34 crore to Rs 38.10 crore this year.