The Indian auto component industry, which is currently valued at US$ 30 billion, will touch US$ 100 billion by 2020, according to Rajkot-based Ikon Marketing Consultants. The industry is growing at a steady pace of 15 - 18 per cent annually. The retail market (generally called as after-sales or after-market) for auto components is valued at Rs 600 crore (US$ 111.11 million) and is expected to witness a quantum jump on the back of robust domestic demand.
An analysis of medium to heavy-duty Hybrid and Electric Commercial Vehicle Market in China and India estimated that the component revenues from India will reach US$ 212 million by 2020, which would account for 11 per cent of the global component market, as per Frost and Sullivan.
The auto component industry has been growing at a compound annual growth rate (CAGR) of 14.6 per cent during 2007-11 and is expected to be a US$ 113 billion by 2020, as per data provided by Automotive Component Manufacturers Association of India (ACMA).
The small and medium enterprise (SME) dominated automotive sector is among the top three sectors attracting heavy online traffic on the site, IndiaMART.com, in terms of the number of buyers who visited from other countries, both developed and developing, as per a report by IndiaMART.com. Asian countries are also key buyers for auto products from India. Among the Indian suppliers registered on IndiaMART.com, the auto component sector features in the top five categories, contributing 11.8 per cent to the whole pie. Product categories such as pumps and pumping equipments took the top slot with 8.1 per cent buy leads posted on them, followed by products such as nuts and bolts in second place and lights and accessories in third position.
Polaris Industries, maker of All Terrain Vehicles (ATVs), snowmobiles and motorcycles, is set to give a fillip to the nascent motorsports market with its entry this year.
Supportive Government policies, positive business environment, availability of reasonably priced talented workforce and stable outlook for the industry have made India a global hub for the international manufacturers to set up their facilities in the country. The auto components manufacturers are also reaping the benefits.