- 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.
- Jewellery, tractor makers to gain from revised GST
- PE investments in auto parts up 607% in the first five months of 2017
- Piramal Finance invests Rs565 crore in auto component firms RSB Group, Indoshell Mould
- Natural rubber production surges 23% in 2016-17
- Indian auto-component aftermarket to touch Rs 75,705 crore by 2019-20