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.
Market insights:
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. However, in terms of the number of players, the market is dominated by the aftermarket segment.
Government initiatives:
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
Competition analysis:
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.
Companies covered:
• 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
Chapter 1: Executive summary
Chapter 2: Socio-economic indicators
Chapter 3: Introduction
3.1. Market definition and structure
Chapter 4: Market overview
4.1. India automobile industry overview
4.1.1. Automobile production trend in India - volume-wise (FY 2013-FY 2019)
4.1.1.1. Production volume of passenger vehicles in India (FY 2014-FY 2019)
4.1.1.2. Production volume of commercial vehicles in India (FY 2014-FY 2019)
4.1.1.3. Production volume of three wheelers in India (FY 2014-FY 2019)
4.1.1.4. Production volume of two wheelers in India (FY 2014-FY 2019)
4.1.2. Automobile sales trend in India - volume-wise (FY 2013-FY 2019)
4.1.3. Domestic automobile sales split based on vehicle type (FY 2019)
4.2. India auto ancillary market overview
4.2.1. Auto ancillary market size and growth forecast (FY 2018-FY 2024e)
4.3. India auto ancillary market segmentation
4.3.1. Auto ancillary market segmentation based on stakeholders (%) (FY 2018)
o OEM suppliers
o Exports
o Aftermarket
4.3.2. Auto ancillary aftermarket segmentation based on product type (%) (FY 2018)
o Drive transmission and steering
o Engine components
o Electricals
o Suspension and braking
o Others
Chapter 5: Opportunities in the auto ancillary industry in India
5.1. Overview
5.2. Favorable industrial policies
5.3. Financial support to the industry
5.4. State incentives
5.5. Investment in the industry
Chapter 6: Market trends
6.1. Key market trends
Chapter 7: Trade analysis
7.1. Export of auto ancillary products
7.2. Import of auto ancillary products
Chapter 8: Market influencers
8.1. Market drivers
8.2. Market challenges
Chapter 9: Competitive landscape
9.1. Amtek Auto Limited
- Company information
- Business description
- Products/services
- Key people
- Financial snapshot
- Key ratios
- Key financial performance indicators
- Key business segments
- Key geographical segments
Note: Similar information covered for all other public companies. Private companies' data given on best effort basis.
9.2. Bharat Forge Limited
9.3. Bosch Limited
9.4. Exide Industries Limited
9.5. Gabriel India Limited
9.6. Mahindra CIE Automotive Limited
9.7. Sundram Fasteners Limited
9.8. TVS Motor Limited
9.9. Nifco India Private Limited
9.10. ARaymond Fasteners India Private Limited
Chapter 10: Recent developments
10.1. Recent developments
Chapter 10: Appendix
11.1. Research methodology
11.2. About Netscribes
11.3. Disclaimer
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