Dublin, Dec. 20, 2024 (GLOBE NEWSWIRE) -- The "Auto Ancillary Market in India 2024-2029" report has been added to ResearchAndMarkets.com's offering.
In FY 2024, the Indian auto ancillary market was valued at INR 6.14 trillion, expanding at a compound annual growth rate (CAGR) of ~10.67% during FY 2025 - FY 2029 period.
The faster growth rate of automotive sales in the domestic market, compared to overall production growth, reflects rising demand within the sector. This upward trend presents significant opportunities for automobile manufacturers and supporting industries to expand their capacities, launch new models, and meet the increasing demand.
Engine components, body/chassis, and suspension braking components accounted for more than 50% of total auto ancillary sales in FY 2023 and FY 2024. The high sales of engine components and body/chassis segment are driven by the strong surge in the domestic market, higher localization by original equipment manufacturers (OEMs), and the need for more components for each vehicle.
The passenger vehicles segment has held the highest share of total auto component supplies to OEMs since FY 2022, followed by two-wheelers and light commercial vehicles (LCVs). This trend is anticipated to continue in FY 2025, driven by rising demand, government incentives for manufacturing, increasing urbanization, and a growing middle-class population.
Market growth opportunities:
Initiatives such as Make in India and Digital India, along with improved infrastructure and ease of doing business in India, have significantly boosted domestic manufacturing and attracted foreign investments. Despite these efforts, Indian electronics account for only 4% of global demand, representing less than 1% of the global market share, as reported by NITI Aayog.
This indicates a vast growth opportunity for companies in the electronics sector, including ancillary companies.
Market drivers:
The auto ancillary market in India is experiencing robust growth, propelled by several key drivers. One of the primary factors is the expansion of the domestic automotive market, with rising vehicle sales across segments such as passenger cars, two-wheelers, and commercial vehicles.
The rising trend of vehicle electrification, along with increased consumer awareness about safety and sustainability, has led to a greater demand for high-quality, efficient, and green auto parts. Additionally, India's strong export potential, supported by competitive manufacturing costs and a skilled labor force, is helping the auto ancillary sector establish a prominent position in global supply chains.
Key deterrents to the growth of the market:
Prices for energy, raw materials, and other inputs needed to manufacture auto components often increase because of inflation. Because of this, the cost of producing auto parts will increase, which will result in a decline in manufacturers' profit margins.
Price instability brought on by inflation can make it challenging for manufacturers to forecast and control expenses efficiently. This will make it difficult to set competitive auto component costs, which is expected to influence demand.
Key Topics Covered:
Chapter 1: Executive Summary
Chapter 2: Socio-Economic Indicators
Chapter 3: Introduction
3.1. Market definition and structure
3.2. Auto ancillary landscape in India
Chapter 4: Automobile Production Trends
4.1. Automotive production in India (volume)
4.2. Automotive domestic sales in India (volume)
4.3. Production of passenger vehicles in India (volume)
4.4. Production of commercial vehicles in India (volume)
4.5. Production of three-wheelers in India (volume)
4.6. Production of two-wheelers in India (volume)
Chapter 5: Auto Ancillary Market - An Overview
5.1. Market size and growth forecast based on value (FY 2021 - FY 2029f)
5.2. Current market scenario
Chapter 6: Auto Ancillary Market - Segmentation
6.1. Auto ancillary sales segmentation - based on category (FY 2023, FY2024)
6.2. Share of auto ancillary product supplied to OEMs based on vehicle type (FY 2023, FY 2024)
Chapter 7: Market Influencers
7.1. Market drivers
7.2. Market challenges
Chapter 8: Market Opportunities
8.1. India's emerging position as an auto hub
8.2. Improving electronic manufacturing in India
8.3. De-risking of the supply chain by global OEMs
Chapter 9: Government Initiatives
9.1. Government initiatives
Chapter 10: Market Trends
10.1. Key market trends
Chapter 11: Trade Analysis
11.1. Trade analysis
Chapter 12: Competitive Landscape
12.1. Bharat Forge Limited
- Company information
- Business description
- Products/Services
- Key people
- Financial snapshot
- Key ratios
- Key financial performance indicators
- Key business segments
- Key geographic segments
12.2. Bosch Limited
12.3. Exide Industries Limited
12.4. Gabriel India Limited
12.5. Mahindra CIE Automotive Limited
12.6. Sundram Fasteners Limited
12.7. UNO Minda Limited
12.8. ARaymond India Private Limited
12.9. Autoliv Inflators India Private Limited
12.10. Nifco India Private Limited
For more information about this report visit https://www.researchandmarkets.com/r/ki4q56
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