Auto Components

Auto Components

Current Status and Size of the Market

• The Indian Auto Components is a 8.7 billion industry; 16% of this was exported ($1.4 billion)
• India currently has only a small, 0.4% share of the global Auto Components market, in spite of the high growth in the past few years
• Domestic market has exhibited high growth - CAGR of 23% in the last 4 years
• Exports has grown at a CAGR of 34% in the last 4 years
• The Industry is highly fragmented, with fewer than 5 players with revenues over $250 million
• However, Indian manufacturers are gaining recognition as “global quality” players
• 50% of Indian Auto Components exports are to Europe and USA
• 5 Indian companies in the automotive sector have received the coveted Deming Prize: the largest number outside Japan
  

Structure of Indian Auto Components Industry

• It's a highly fragmented industry with less than 5 players with revenues over $250 million
• Recently, Indian manufacturers are increasingly getting recognition as “global quality” players
• Over 50% of Indian Auto Components exports are to Europe and USA
• 5 Indian companies in the automotive sector have received the coveted Deming Prize: the largest number outside Japan
• Global auto-component majors, such as Delphi, Visteon, Bosch and Meritor have set up operations in India
• Many auto manufacturers including GM, Ford, Toyota, etc. and Auto Components manufacturers have set up International Purchasing Offices (IPOs) in India to feed their global operations
• GM, Daimler Chrysler, Bosch, Suzuki, Johnson Controls etc. have already set up development centers in India
  

GOI Policy
100% FDI allowed through the automatic route

Major Players

Potential & Opportunities

• Indian Auto Components Industry is expected to grow at a CAGR of 15% over the next 10 years
• India’s share in global trade of Auto Components will grow from 0.4% in 2003-04 to over 3% by 2015-16
• Domestic market projected to grow at over 8% p.a. In the next 10 years
• Exports projected to grow at over 30% p.a.
• India amongst the most competitive manufacturers of Auto Components; especially,
• Metal Intensive components: Forgings, Stampings, Castings
• Skilled Lab our-intensive components: Machining, wiring-harness, other electrical components
• Hi-tech components: Electronic Fuel Injectors
• India’s stock of high skilled engineering enables provides major MNCs an ideal base to set up engineering design and research centers in India
• India could emerge as a global hub for engineering design and manufacture of key automotive aggregates
• Investment need of over $5 billion required to cater to the domestic demand as well as the global opportunity