The auto ancillary market in India deals with the production and sale of intermediate equipment and automotive parts that are used in automobile manufacturing. It is a crucial part of the automotive industry in India. The market is segmented into organized and unorganized sectors. The organized sector serves original equipment manufacturers (OEMs) and deals in high-value instruments. In contrast, the unorganized sector serves the aftermarket with low-value tools and parts. The auto ancillary market in India is moving towards the production of electric vehicle parts and components. Further, it is expected that the Indian auto ancillary market would be the third-largest in the world by 2025.
Performance of the automotive industry in India largely affects the auto ancillary sector. In terms of volume, automobile sales in India increased at a compound annual growth rate (CAGR) of ~6.71% during the FY 2013-FY 2019 period, with 26.27 Mn units of vehicles being sold in FY 2019. The domestic automobile production expanded at a CAGR of ~6.96% during the FY 2013-FY 2019 period, with production volume reaching 30.92 Mn units in FY 2019.
The auto ancillary market in India was valued at INR 3,936.96 Bn in FY 2019 and is expected to reach INR 8,401.30 Bn by FY 2024, expanding at a CAGR of ~16.94% during the FY 2020-FY 2024 period. In terms of revenue contribution, the auto ancillary market in India is dominated by OEM suppliers, accounting for ~55.98% of the industry, followed by the exports and aftermarket segments.
Top Key players of Auto Ancillary Market in India Market Covered In The Report:
• Amtek Auto Limited
• Bharat Forge Limited
• Bosch Limited
• Exide Industries Limited
• Gabriel India Limited
• Mahindra CIE Automotive Limited
• Sundram Fasteners Limited
• TVS Motor Limited
• Nifco India Private Limited
• ARaymond Fasteners India Private Limited
The government has formulated various policies to boost the growth of the auto ancillary market in India. Auto Policy 2002, Automotive Mission Plan 2016-2026, National Automotive Testing and R&D Infrastructure Project (NATRIP), National Electric Mobility Mission Plan 2020 (NEMMP), and Faster Adoption & Manufacturing of Electric Hybrid Vehicles (FAME) Scheme II are a few significant programs launched by the Indian government. Moreover, other initiatives include providing R&D incentives for industry and private sponsored research, granting export subsidy under the Merchandise Exports from India Scheme (MEIS) and offering incentives to players operating in Special Economic Zones (SEZs)/National Investment & Manufacturing Zones (NIMZs).
Key growth drivers of the market:
• The enforcement of BS-VI standards of safety and emission is expected to help the export market grow for the benefit of auto component players in India during the forecast period
• Further, India is growing as a cost-effective manufacturing base, owing to its preferable location for foreign players to set up their manufacturing units, thereby augmenting the development of the auto ancillary market in India
Key deterrents to the growth of the market:
• Even though there has been a growth in annual production for the overall automotive industry, consumption in recent quarters (2019 onwards) experienced a decline due to liquidity crisis for Non-Banking Financial Companies (NBFCs), rise in automotive acquisition costs and high goods and service tax (GST) rates
• Moreover, lack of research and development infrastructure and quality standards present a considerable threat to the auto ancillary industry in India
The Indian auto ancillary market is highly fragmented, the organized sector (OEMs) being dominated by a few major players like Bharat Forge Limited, Mahindra CIE Automotive Limited, Bosch Limited and Sundram Fasteners Limited. The unorganized sector consists of the aftermarket segment, where most of the small and medium enterprises (SME) are from the tier II and tier III cities.
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In addition, the Auto Ancillary Market in India market report incorporates important information regarding key market competitors. This includes analysis of these companies over various fronts including market share, company profile, financial overview, product or service portfolio, recent deal, merger or deal, etc. This might lead readers towards greater knowledge of the competitive dashboard of the industry.
At the end, while concluding the Auto Ancillary Market in India market report shares report findings and conclusions regarding the industry. This includes anticipatory claims, analysis of historical data, forecasts including segmental forecast, market size forecast, regional performance forecast, demand forecast, consumption forecast and more. This might help readers to develop strong understanding of the industry with information at hand.
Reasons to buy:
•What are the key factors covered in this report regarding Auto Ancillary Market in India Market?
-Market Segmentation, Overview of each segment
-Key Companies Analysis
•How researchers have reached the report findings shared in the report?
-Study of historical data figures
-Analysis of current scenarios in every domestic as well as regional market
-Examination of trends, available information and data figures
-Use of proved methodology to project for next five years
•Which prime data figures are included in the report?
-Market size (Last few years, current and expected)
-Market share analysis as per different companies
-Market Contributions (Size, Share as per regional boundaries)
•Who all can be benefitted out of this report?
-Teams, departments, and companies
-Vendors, Buyers, Suppliers
•What are the crucial aspects incorporated in the report?
-Industry Value Chain
-Market Size Expansion
-Key Economic Indicators
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Note: In order to provide more accurate market forecast, all our reports will be updated before delivery by considering the impact of COVID-19.