The Indian auto component industry is expected to reach a turnover worth US$ 113 billion by 2020-21 from US$ 43.4 billion in 2011-12, according to a Automotive Component Manufactures Association (ACMA) report titled, 'Auto Component Industry in India: Growing Capabilities & Strengths'. The exports from the industry are expected to grow at a compound annual growth rate (CAGR) of 17 per cent during 2012-21, the ACMA report highlighted.
India has emerged as one of the world's most competitive tyre markets due to vast availability of raw material (natural rubber) and ultramodern production facilities. The radial tyre market is expected to reach Rs 393 billion (US$ 7.33 billion) by FY 2015 growing at a CAGR of more than 21 per cent during FY 2011-FY 2015.
The automotive plants of global automakers in India rank among the top across the world in terms of their productivity and quality. Top auto multinational companies (MNCs) like Hyundai, Toyota and Suzuki rank their Indian production facilities right on top of their global pecking order.
The Indian automobile and auto components industry can be expected to surpass China's growth path by 2021, according to a research report by Espirito Santo Securities.
The tyre production in India is anticipated to reach 191 million units by the end of FY 2016, according to a RNCOS research report titled, 'Indian Tyre Industry Forecast to 2015'. The manufacturers are expected to invest huge amount into the industry over the next few years, with a major proportion of this investment directed towards the radial tyre capacity expansion.
In addition, with a significant increase in the number of CNG vehicles, the CNG vehicle market is witnessing a strong growth pattern. According to a RNCOS report titled, "India CNG Vehicle Market Analysis", the CNG kit market is expected to reach around INR 30 Billion in FY 2014, growing at a CAGR of around 22 per cent during FY 2011-2014.
The amount of cumulative foreign direct investment (FDI) inflow into the automobile industry during April 2000 to January 2013 was worth US$ 8,061 million, accounting to 4 per cent of the total FDI inflows (in terms of US$), as per data published by Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce.
A delegation of Japanese auto component companies visited Tamil Nadu (TN) to explore investment opportunities and scout for partnerships with Indian auto component makers. The State houses over 300 Japanese companies and these tier 1 companies would need support from tier 2 component makers and other micro, small and medium enterprise (MSME) suppliers.
Apollo Tyres plans to expand its reach in Association for South East Asian Nations (ASEAN). The company will set up a subsidiary to explore market opportunities in the region.
Honda Cars India Ltd (HCIL) plans to export diesel engine components to Asian and European markets from India.