Automobile Components

Growth Drivers

  • A growing working population and an expanding middle-class are expected to remain key demand drivers.
  • The presence of a large pool of skilled and semi-skilled workforce and a strong educational system.
  • Increased investments in R&D operations and laboratories, which are being set up to conduct activities such as analysis, simulation and engineering animations.
  • Reduction in excise duties in the motor vehicles sector will spur demand for auto components.
  • The growth of global OEM sourcing from India and the increased indigenisation of global OEMs is turning the country into a preferred designing and manufacturing base.

Reasons to Invest

  • An emerging global hub for sourcing auto components.
  • Geographically closer to key automotive markets like the ASEAN, Japan, Korea and Europe.
  • Cost competitiveness.
  • Third largest producer of steel in the world.
  • Cost of making steel significantly lower than competitive nations.
  • Several global Tier-I suppliers have announced plans to increase procurement from their Indian subsidiaries.
Automobile Components

Foreign investors