Auto component in India: Key market research findings
- Upward trend in cylindrical growth drives the market
- Engine, suspension, and braking parts account for the dominant share of the market
- Key vendors – Bharat Forge, Bosch India, Minda, Samvardhana Motherson, and TVS
Technavio’s market research analysts predict the auto component market in India to grow at a CAGR of more than 19% between 2016 and 2020. The upward trend in cyclical growth of the automotive industry is the primary driving force behind growth in the market. Cost-efficiency in operations and improved quality have triggered an increase in the export volumes for auto components to original equipment manufacturers (OEMs). Favorable legislations that facilitate 100% foreign direct investments in the automobile sector is projected to attract more joint ventures and wholly-owned subsidiaries. The replacement sector is also likely to grow at a rapid pace owing to favorable commodity prices during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the auto component segments based on the product.
“The benefits brought about by the pre-downturn capacity that for Indian auto component manufacturers are the latest trend in the market. Many prominent players in the Indian auto component market had embarked on significant capacity expansion programs in the years before the down cycle (FY2009-2012 period). They are aiming at capitalizing on higher domestic demand and export opportunities. The key driving force behind such expansion is the hunger for inorganic growth as Indian companies made acquisitions abroad with the sole purpose of procuring technologies or brand value. This is spurring a sharp increase in the industry’s capital expenditure (CAPEX),” says Siddarth Jaiswal, Lead Analyst, Automotive, Technavio Research.
During 2015, the engine, suspension, and braking parts segment accounted for around 42% of the overall market share to become the dominant shareholder in the auto component market in India. Several initiatives taken by the government to incubate complex skill sets within the automotive industry coupled with the evolution of automotive clusters are some of the factors that are likely to boost growth in the engine, suspension, and braking parts market in India in the coming years.
The key vendors in the auto component market in India include Bharat Forge, Bosch India, Minda, Samvardhana Motherson, and TVS. Owing to the presence of several auto component manufacturers, this market appears highly fragmented. Geographical presence and penetration in the auto component market are identified to play a critical role in defining the market position of a vendor. The increase in demand and the presence of major vendors looking to gain a considerable share of the market are likely to intensify vendor competition in the next four years.
A more detailed analysis is available in the Technavio report, Auto Component Market in India 2016-2020.
We can customize reports by other regions and specific segments upon request.
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