High Growth Prospects for the Indian Auto Industry
The $49 billion (FY20) Auto Components industry in India is expected to grow to $200 billion by 2026.
Indian Auto Component industry exports, which are currently valued at $14.5 billion in FY20, are expected to grow at an annual rate of 23.9% to reach $80 billion by 2026. USA, Germany, UK, Thailand and Italy are the top destinations for exports.
Aftermarket segment which includes tyre, battery, brake parts, is expected to reach $32 billion by 2026 from $9.8 billion currently.
The overall Indian auto components industry, which accounts for 2.3% of India's GDP currently, is set to become the 3rd largest globally by 2025.
GROWTH DRIVERS
1. Expanding R&D hub: 8% of the country’s R&D expenditure is in the automotive sector
2. Emerging global sourcing hub: Proximity to markets such as ASEAN, Europe, Japan and Korea
3. Cost competitive: Excise duty reduction in vehicles will spur demand
4. Sixth largest vehicles manufacturer in the world: India expected to be the third largest market by 2026
5. Favorable trade policy: 100% FDI allowed and no restrictions on import-export
6. Atmanirbhar Bharat: PLI schemes in automobile and auto component sector with financial outlay of INR 57,042 crores introduced under Atmanirbhar Bharat 3.0
No comments:
Post a Comment
Note: only a member of this blog may post a comment.