IBEF-印度汽车零部件行业报告（2019年3月）（英文）-2019.3-33页_1mb

Summary of AUTO COMPONENTS Industry in India

Core Content

The Indian automotive components industry has experienced significant growth over the past decade, with a Compound Annual Growth Rate (CAGR) of 6.83% and a projected turnover of US$ 100 billion by 2020, aiming for US$ 200 billion by 2026. Exports have also grown at a CAGR of 11.42%, reaching US$ 13.5 billion in FY18 and expected to reach US$ 80 billion by 2026. The domestic market is anticipated to grow at 15% in FY19, with auto components production expected to rise by 12-14%.

The industry is expected to contribute 2.3% to India's GDP in 2017-18, employing 1.5 million directly and 1.5 million indirectly. India is set to become the fourth-largest automobile producer globally by 2020 and the third-largest auto components producer by 2025. The shift towards electric vehicles is also expected to generate a US$ 300 billion domestic market for EV batteries by 2030.

Main Points

Market Overview

• Turnover: The industry's turnover increased from US$ 26.44 billion in FY08 to US$ 51.20 billion in FY18.
• Domestic OEM Supply: Accounts for 55.97% of the industry turnover, followed by exports (26.20%) and the domestic aftermarket (17.82%).
• Export Growth: Exports in FY18 reached US$ 13.5 billion, with Europe accounting for 34% of the export volume, North America 28%, and Asia 25%.
• Aftermarket: Contributed 17.82% of the total turnover in FY18, growing at a CAGR of 9.67% from US$ 5.80 billion in FY13 to US$ 9.20 billion in FY18.

Key Industry Players

• Engine & Engine Parts: Goetze, Shriram Pistons & Rings, Rane Engine Valves, Mico, Delphi-TVS Diesel System, Tata Cummins.
• Transmission & Steering Parts: Sona Koyo Steering Systems, Bharat Gears, ZF Steering Gear (India) Ltd, GKN Driveshafts, Spicer India.
• Suspension & Braking Parts: Brakes India, Kalyani Brakes, Mando India Ltd., Gabriel India, Delphi.
• Electrical Components: Lucas TVS, Denso, Delco Remy Electricals, Nippon Electricals.
• Equipment: Lumax, Autolite, Phoenix Lamps, Premiere Instruments & Controls.
• Other Segments: Key players include companies like Exide Industries, Kesoram Industries, and Amara Raja Batteries, which are investing in lithium-ion battery production.

Recent Trends and Strategies

• Global Sourcing Hub: India is becoming a preferred sourcing base for global OEMs, with companies like Ford, Fiat, and Hyundai sourcing engines and components from India.
• R&D Expansion: Companies are increasing investments in R&D to develop new technologies and products, with initiatives like NATRiP and partnerships with institutions like IISc.
• Inorganic Growth: Mergers and acquisitions are on the rise, such as Rico Auto Industries planning a joint venture with HZ Manufacturing, and Mahindra CIE Automotive acquiring Aurangabad Electricals Ltd.
• Focus on EVs: Companies like Varroc Engineering and Lucas TVS are targeting the electric vehicle segment, with Varroc supplying components for Tesla vehicles.

Growth Drivers

• Demand-Side: Robust growth in the domestic automotive industry, increasing road infrastructure, and a growing middle class.
• Supply-Side: Competitive advantages such as a skilled workforce, low manufacturing costs, and proximity to key markets.
• Policy Support: Initiatives like the Automotive Mission Plan 2016-26, FAME Scheme, and the Make in India campaign are driving growth and investment in the sector.

Opportunities

• Domestic Market: Expected to account for 71% of total sales by 2021, with a total market size of US$ 115 billion.
• Export Market: Expected to account for 26% of total sales by 2021.
• Product Segments: Engine & Exhaust, Body & Structural parts are expected to make up 50% of the potential sales in both domestic and export markets. Transmission and Steering, Electronics and Electrical, and others are also key growth areas.
• Lithium-ion Battery Market: Companies are planning to invest in lithium-ion battery production to benefit from the growing EV market, with BHEL and Libcoin discussing a 1GWh battery plant.

Key Industry Associations

• Automotive Component Manufacturers Association of India (ACMA): Provides support and resources to the industry, including technical services and R&D initiatives.

Useful Information

• FDI Inflows: From April 2000 to December 2018, FDI inflows in the automotive sector reached US$ 20.85 billion.
• Policy Measures: Includes automatic approval for 100% FDI in auto components, reduced import duties on EV parts, and support for R&D through NATRiP and other initiatives.
• Capital Expenditure: Expected to be around Rs 24,000 crore (US$ 33.26 billion) over FY19 and FY20.

Conclusion

India's auto components industry is well-positioned for robust growth, supported by strong domestic and export demand, favorable policies, and increasing investments in R&D and manufacturing. The industry is expected to play a crucial role in the country's economic development and is becoming a global hub for component sourcing, particularly in the context of electric vehicle adoption and technological advancement.