AUTO COMPONENT INDUSTRY IN INDIA: AN OVERVIEW
INDIA IS TODAY KNOWN FOR BEING A RELIABLE PRODUCER OF HIGH-VALUE PRECISION COMPONENTS FOR ALMOST ALL GLOBAL AUTO MAJORS.
India has emerged as one of the leading global automotive manufacturing hubs in recent years. With a turnover of over USD 39 billion, and exports worth USD 11 billion to over 160 countries, the Indian auto component industry today is a preferred sourcing base for globally competitive products. The auto-components industry accounts for almost four per cent of India’s Gross Domestic Product (GDP) and employs 1.5 million people, directly and as many indirectly. Increased investments in engineering, R&D and new product development, are expected to further boost India’s position as a leading global supplier.
The Indian auto component industry boasts of 16 Deming and two Grand Deming Awardees, the highest outside of Japan. Further, enhanced sourcing from India by original equipment manufacturers (OEMs) and tier-1s for global markets and increased localisation by OEMs invested in India, is also turning the country into a preferred engineering and product designing hub, especially for emerging markets. Factors such as a stable government policy framework, increased purchasing power, large domestic market, presence of adequate skilled and semiskilled manpower and fast improving infrastructure only add to India’s attractiveness as a global hub for manufacturing.
The auto and auto component sector is a key focus area of the Government of India’s flagship ‘Make in India’ program. The Automotive Mission Plan 2026, envisages that the auto component industry in India will scale-up to USD 200 billion by 2026, while the exports will grow to USD 70-80 billion. The aftermarket, in the same breadth, is expected to grow several folds from the current USD 8 billion to USD 32 billion by 2026.
A strong and flourishing, but demanding domestic auto market is helping the Indian component industry strengthen its position in the global automotive industry by creating cost effective products and solutions. The industry is fast graduating from being a ‘buildto-print industry’ to one that is ‘art-to-part’.
The Indian auto components industry will showcase its strengths and capabilities at the Automechanika Dubai 2017. Being held from May 7-9, 2017 in the Dubai World Trade Centre, around 100 Indian companies are participating in the Indian pavilion jointly organised by the EEPC India and the Automotive Components Manufacturers Association of India (ACMA) in Hall 1. The India Brand Equity Foundation (IBEF), a trust established by the Department of Commerce, has designed and executed the branding plan for India’s participation at Automechanika Dubai. Do visit the Indian pavilion to be a part of the India’s vibrant automotive Industry!