Advantage India
Robust
Demand
* Growing working population and expanding middle class are expected to remain key demand drivers.
* By 2025, 4 million of EVs could be sold each year and 10 million by 2030. The market is expected to reach US$ 206 billion by 2030.
* The Indian auto component industry is set to become the 3rd largest globally by 2025.
Export
Opportunities
* India is emerging as a global hub for auto component sourcing and the industry exports over 25% of its production annually.
* Auto component exports are expected to grow and reach US$ 30 billion in FY26.
* India has a competitive advantage in auto components categories such as shafts, bearings and fasteners due to large number of players. This factor is likely to result into higher exports in coming years.
Policy
Support
* 100% FDI is allowed under the automatic route for auto components sector.
* Production Linked Incentive (PLI) schemes on automobile and auto components are expected to bring a capex of Rs. 74,850 crore (US$ 9.58 billion) in the next five years.
Competitive
Advantage
* A cost-effective manufacturing base keeps costs lower by 10-25% relative to operations in Europe and Latin America.
* India is the 2nd largest steel producer globally, thus has a cost advantage.
* India is emerging as a global auto component sourcing hub due to its proximity to key automotive markets such as ASEAN, Europe, Japan and Korea.
Motherson Sumi Systems Limited
Samvardhana Motherson was established in 1986 as a joint venture with the Sumitomo Group of Japan. The Company is a full system solutions provider to customers in automotive and other industries. It has a diversified product portfolio, which includes electrical distribution systems, fully assembled vehicle interior and exterior modules, automotive rear vision systems, moulded plastic parts and assemblies, injection moulding tools, moulded and extruded rubber components, lighting systems, electronics, precision metals and modules, Industrial IT solutions and services and technologies, such as telematics and others.
Its segments include Wiring harness, Modules and polymer products, and Emerging businesses. Emerging businesses comprise elastomers, lighting & electronics, precision metals & modules, technology & industrial solutions, logistics solutions, aerospace, health & medical, and services operations of the Company.
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Sundram Fasteners Limited
Started in 1966, Sundram Fasteners Limited has grown into a global leader, manufacturing critical, high precision components for the automotive, infrastructure, windmill, and aviation sectors. The company’s varied range of products encompass fasteners, powertrain components, sintered metal parts, iron powder, cold extruded parts, radiator caps and wind energy components.
Read MoreBharat Forge
Bharat Forge is the largest exporter of auto components from India and one of the leading chassis components manufacturers in the world. The company continues to invest in state-of-the-art facilities harbouring world-class capacities and capabilities. Its automotive facilities include fully automated forging lines, fully automated machining lines, strong IT platform-based technology infrastructure and seamless engineering and design support. The company’s customer base includes virtually every global automotive OEM and Tier 1 supplier. It is amongst the few global automotive component manufacturers with capability to offer front line design and engineering, dual shore manufacturing capability and full-service supply capability.
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