Autocomponent Industry

Topics: India, Automotive industry, South India Pages: 5 (1453 words) Published: June 1, 2013
Higher standards............making a difference for you

The Indian Auto Components Industry Indian auto component industry is emerging as a global manufacturing hub for auto component manufacture. Indian auto component industry is one of the front runners for grabbing the global auto component outsourcing market, estimated to be worth US$700 billion by 2015. Auto components sector requires an incremental investment of Rs 2,000-crores as per the report of working group on automobile industry Eleventh Five Year Plan (2007-2012). Today, India has the potential to manufacture a range of automotive components (about 20,000 in numbers) - from fasteners to engine parts Apart from the foreign demand, the domestic car production is also growing with sales expected to be about 10 million by 2009. The exports are expected to touch US$5 billion by 2010. The Indian auto component Industry is highly fragmented: • • • Around 500 organized players account for the 77% of the value added in the sector. Unorganized players are mainly replacement market players or tier 3/4 component manufacturers Automotive Manufacturers Association of India (ACMA) represents the auto component industry in India and has around 500 registered members.

Segment-wise division: The Auto components industry is predominantly divided into the following segments: • • • • • • • Engine parts: 31% Drive Transmission & Steering Parts: 19% Suspension & Brake Parts: 12% Electrical Parts: 9% Body and chassis: 12% Equipments: 10% Others: 7%

D-19 (GF) & D- 31, South Extension -1, New Delhi-110049, India email: g.khurana@indialawoffices.com, website: www.indialawoffices.com

Higher standards............making a difference for you

Opportunities: • • India is emerging as a global manufacturing hub for auto component manufacture. India is among the most competitive manufacturers of auto components in the world. Auto component industry in India has potential to grow at a CAGR of 13% to reach US$40 billion by 2015. India’s share in world Auto Components is expected to grow over 2.5% by 2015. Domestic market projected to grow at around 8-10% 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 Labour-intensive components: Machining, wiring -harness, other electrical components Hi-tech components: Electronic Fuel Injectors Opportunity to address the global Auto Components market while leveraging India’s large and growing domestic market Opportunity to set up R&D centres in India Potential of over US$5 billion for investment in India. High level of sourcing of auto components from low cost countries (LCC’s) to act as a driver for growth. Besides, the announcement of 'Automotive Mission Plan' for the period of 2006-2016 is a major step taken to make India a global automotive hub. The Mission Plan aims to make India emerge as the destination of choice in the world for design and manufacture of automobiles and auto components, with output reaching a level of US$ 145 billion. D-19 (GF) & D- 31, South Extension -1, New Delhi-110049, India email: g.khurana@indialawoffices.com, website: www.indialawoffices.com

• • • • • • • • • • • •

Higher standards............making a difference for you

Market Trends: Auto Component Industry – Statistics (Value in US $ million) Turnover Exports Imports Investment • • 2003-04 2004-05 2005-06 2006-07 2007-08

6,730 3,615 4,938 3,100

8,700 2,873 3,328 3,750

12,000 2,469 2,482 4,400

15,000 1,692 1,902 5,400

18,000 1,274 1,428 7,200

The Indian auto component industry reached a size of US$ 15 billion in 2006–07, growing at a CAGR of nearly 29% in the last four years. The exports of auto components industry has reached around US$ 2.9 billion in 2006-07, having grown at a rate of 40% CAGR over the last four years. The industry crossed a total turnover of over US $...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Roots Industries Ltd. India Essay
  • Overview of Paint Industry Essay
  • Protectionism and Trade Barriers in Automobile Industry of Malaysia Research Paper
  • Industry Evolution Essay
  • Industries in Bangladesh Essay
  • Cosmetic Industry Essay
  • Captains of Industry Essay
  • Attractive Industries Essay

Become a StudyMode Member

Sign Up - It's Free