LONDON--(BUSINESS WIRE)--According to the latest market study released by Technavio, the auto component market in India is expected to grow at a CAGR of more than 19% during the forecast period.
This research report titled ‘Auto Component Market in India 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes an up to date analysis and forecasts for various market segments and all geographical regions.
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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.
Electrical parts
The Indian auto component market in the electrical parts segment is expected to grow at an impressive CAGR of over 31%. Electrical parts represent one of the fastest-growing segments in the Indian auto component market due to increasing electronic content in mass-mid and entry segment vehicles. In addition, implementation of regulations such as the NCAP certification by the end of 2018 which mandate the incorporation of safety features such as airbags will necessitate a higher volume of electronic controls to be mounted on the steering wheel. This will lead to an increase in the demand for electric parts among vehicles.
Moreover, increasing competition among OEMs is pushing advanced features into mid-segment and entry-level vehicles. This paves the way for complex electronic systems, however, providing cost-competitive electronic solutions may prove to be a challenge and an opportunity for Indian automotive companies.
Drive transmission and steering (DTS) parts
The Indian auto component market in the DTS parts is expected to reach USD 19 billion by 2020, growing at a CAGR of over 18%. “The expected decline in the electronics segment post 2019 may be ameliorated to some extent by the fact that steering systems themselves are undergoing growth in the drive-by-wire technology field,” says Siddharth Jaiswal.
OEMs are expected to increase locally sourced components in their vehicles, driven by cost savings and protection from currency fluctuations. The high taxation on imports levied by the Government of India is also a driving factor behind increased localization.
The top vendors highlighted by Technavio’s research analysts in this report are:
- Bharat Forge
- Bosch India
- Minda
- Samvardhana Motherson
- TVS
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