The Indian auto-components market contributes almost seven per cent to India’s GDP and employs as many as 19 million people. The auto components sector has been observing robust growth, and turnover is anticipated to reach US$ 200 billion by FY26 from US$ 43.5 billion in FY17. India's exports of auto components could account for as much as 26 per cent of the market by 2021. Growth of the domestic auto components industry is expected to reach 9-11 per cent in FY18 on the back of high growth expectation in domestic passenger vehicles (PV) and two-wheelers (2W) segments.^
Favourable government policies such as Auto Policy 2002, Automotive Mission Plan 2016-2026, National Automotive Testing and R&D Infrastructure Projects (NATRiPs), have helped the Indian auto components industry achieve considerable growth.
India is emerging as global hub for auto component sourcing. A cost-effective manufacturing base keeps costs lower by 10-25 per cent relative to operations in Europe and Latin America. Relative to competitors, India is geographically closer to key automotive markets like the Middle East and Europe. Global auto component players are increasingly adopting a dual-shore manufacturing model, using overseas facilities to manufacture few types of components and Indian facilities to manufacture the others.
Investments and expansions in the Indian Auto component sector-
Click here to Download File (Size: 1.47 MB )