Auto components growth projection
India’s auto component market is expected to grow at a CAGR of more than 19 per cent during 2016-2020, said London-based consultancy Technavio in a research report “Auto Component Market in India 2016-2020”.
The report categorizes the auto component market in India into five component segments. The top three segments are discussed below:
Engine, suspension, and braking parts;
Electrical parts;
Drive transmission and steering (DTS) parts;
Additional Insights: Top 15 Companies in the Indian Auto Component Market;
Engine, suspension, and braking parts.
The Indian auto component market in the engine, suspension, and braking segment is expected to grow at a CAGR of close to 16% during the forecast period.
Engine, suspension, and braking components of a vehicle are complex in design and require strong skillsets for mass manufacturing.
According to Siddharth Jaiswal, a lead analyst at Technavio for automotive components, “India is one of the key destinations for complex manufacturing in Asia. The various initiatives driven by the Government of India to incubate complex skillsets in the automotive industry may lead to favorable conditions for manufacturing such components.”
Technavio expects the country to become an attractive destination for complex manufacturing as it holds distinct advantages compared to its peers such as South Korea, Taiwan, and China.
The evolution of automotive clusters should help invite investments and the establishment of research centers (by both domestic and international players). Such factors should drive demand from the supply side.
Additionally, as the Indian automotive industry is still in the growth stage, the pool of mid and entry-level luxury segment is expected to expand during the forecast period thus generating a strong demand from the domestic market.
In addition, as the Indian auto component industry attains competitiveness against its peers in Asia, the country is expected to become a hub for exports of complex engineered components, it said. fii-news.com
