India has the most competitive auto parts manufacturing industry in the world, with Indian automotive components being widely preferred by major automobile manufacturing companies. The auto component companies in India are contributing to the growth of this sector by providing genuine, cheap and reasonably priced automotive parts.
The Indian automotive components industry has actively and quickly transformed from a domestic market supplier, to one of the essential auto parts supplier in the world.
The Indian auto component sector has been growing at 20 per cent a year since 2000 and is projected to maintain the high-growth phase of 15-20 per cent till 2015.
The Indian auto component industry is large and highly fragmented. There are around 400 major players in the auto component sector. The original equipment (OE) market is predominantly catered to by the organised sector. The 400 odd organised producers contribute around 80 per cent to this market
The automotive component industry's output for the financial year 2009-10 was US$ 22 billion with a growth rate of 20 per cent, against financial year 2008-09. The Indian auto component industry has the opportunity to tap around US$ 110 billion by 2020.
Major Indian auto parts makers are on track to report a strong first quarter, on the back of robust after-sales demand and growing exports.
The revenue growth rate of auto ancillary companies is expected to be in line with auto OEMs.In first quarter of the current fiscal, production by all OEMs in the auto industry grew by about 20 per cent in comparison with the corresponding quarter of last year, resulting in corresponding growth in customer demand.
The industry has been exporting around 13 per cent of its output. In the year 2009-10, the industry exported goods worth US$ 3.8 billion. Principal export items include replacement parts, tractor parts, motorcycle parts, piston rings, gaskets, engine valves, fuel pump nozzles, fuel injection parts, filter & filter elements, radiators, gears, leaf springs, brake assemblies & bearings, clutch facings, head lamps, auto bulbs & halogen bulbs, spark plugs and body parts.Exports, which touched US$ 5 billion in 2010-11, are expected to grow by 20-25 per cent in 2011-12.