Practice Area: Automotive

Automotive Markets & Sourcing in India

The Indian automotive market is one of the most rapidly growing automotive markets in the world today, and one of the fastest growing sub-sectors within the Indian automobile sector is the automotive electronics segment. The current size of the Indian automotive electronics market is approximately $2 billion. With electronic content growth in Indian automobiles expected to rise to 20 percent from the current 10 percent, industry sources estimates the market for automotive electronics to grow to approximately $3 to 4.5 billion by 2011.

An expanding middle class, higher disposable incomes and proactive government policies are underlining the explosive growth of the Indian automotive industry. Over the last decade, the market has opened up to global auto majors, and today the Indian automotive industry rivals China in terms of potential growth and market size.

Indian auto component ventures continue to upgrade their production facilities to meet the international standards and to move up the value chain. Indian companies import production machinery, tools, CNC machines, molds and dies from foreign companies to remain competitive internationally. Indian companies also look for strategic partnerships with foreign auto component manufacturers to produce the products locally. This trend is expected to continue for the next five years and beyond.

Source: US ITA,  Frost & Sullivan