Indian auto component companies have gained reputation worldwide, having become compliant in global automotive standards, e.g., the Japanese Industrial Standard Committee (JISC), DeutschesInstitutfürNormung(DIN), etc. India offers the advantage of low manufacturing costs due to economies of scale, low design, research and labour costs and local sourcing of tools and components. Europe and North America are the major export destinations for India’s auto component industry.
The size of the auto components industry has been estimated at US$ 19 billion in 2008–09, growing at a compound annual growth rate (CAGR) of about 23 per cent over the previous five years. The industry is expected to grow to US$ 40 billion by 2016. Engine parts comprise the largest product segment of the auto components industry with a 31 per cent production share.
Among the 6,400 players present in the Indian market, only 600 constitute the organised sector and contribute more than 77 per cent of the country’s total production of auto components. Large Indian players contribute about 43 per cent of the total production, while foreign companies such as Magna, Visteon, Valeo, Bosch, Federal-Mogul Corporation, Denso, etc., contribute about 15 per cent.Sectoral Presentation (April 2010)
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