Dublin, Dec. 01, 2023 (GLOBE NEWSWIRE) -- The "Auto Ancillary Market in India 2023" report has been added to ResearchAndMarkets.com's offering.
The auto ancillary market is predicted to be worth INR 9,359.32 billion by FY 2028, increasing at a compound annual growth rate (CAGR) of 14.74% between FY 2024 and FY 2028.
The auto ancillary market is a critical and integral segment of the Indian automotive industry. It encompasses the production and sale of intermediate equipment and automotive parts used in the manufacturing of vehicles. This sector plays a crucial role in ensuring the smooth functioning of the automotive ecosystem, providing essential components that contribute to the performance, safety, and functionality of vehicles.
Sub-segments within the auto ancillary market include engine parts, drive gearbox and steering parts, body and chassis components, suspension and brake parts, electrical equipment, and others like fan belts, die-casting, and sheet metal parts.
There are two main sectors within the auto ancillary market: the organized sector and the unorganized sector. The organized sector primarily serves Original Equipment Manufacturers (OEMs) and focuses on high-value instruments. On the other hand, the unorganized sector caters to the aftermarket and deals with lower-value instruments.
Market insights:
The Indian automobile sector has faced challenges in recent years. Factors such as reduced consumer confidence, liquidity issues in non-banking financial institutions, and policy changes like the introduction of the Goods and Services Tax (GST) and the transition from BS-IV to BS-VI emission standards have contributed to a downturn in the industry since FY 2019. Additionally, the rise of shared mobility services like Ola and Uber, along with the push towards electric vehicles (EVs), has impacted traditional vehicle ownership patterns.
However, starting from fiscal year 2021, the automobile industry's growth gained momentum due to the adoption of new regulatory measures and advancements in technology. These developments have paved the way for positive changes in the industry landscape.
Competition analysis:
The auto ancillary market is characterized by high fragmentation, with both organized and unorganized sectors contributing to its diversity. In the organized sector, notable players include Bharat Forge Limited, Mahindra CIE Automotive Limited, Bosch Limited, and Sundram Fasteners Limited. These companies are dominant players in supplying high-value instruments to OEMs and contribute significantly to the sector's growth and innovation.
Key growth drivers of the market:
- Demand for Wiring Harnesses: The increasing demand for wiring harnesses across vehicle categories, including two-wheelers and commercial vehicles, has led to higher production of these critical auto parts.
- Skilled Workforce: India's large pool of skilled workers in the manufacturing sector ensures high-quality production and efficient processes.
- Cost Advantage: Lower labor and production costs in India compared to other countries make it an attractive manufacturing destination, enabling competitive pricing of products.
Key deterrents to the growth of the market:
- Electrification and Fuel Injection: The introduction of electrification and advanced fuel injection technologies can lead to price increases, potentially affecting consumer demand and the subsequent demand for auto parts.
- High GST Rates: High Goods and Services Tax (GST) rates can result in higher costs for manufacturers and suppliers of vehicle components, leading to increased production costs and potential price hikes for consumers.
- Affordability Concerns: The increased costs due to high GST rates could make vehicles, especially those with complex components, less affordable for consumers.
Key Topics Covered:
Chapter 1: Executive summary
Chapter 2: Socio-economic indicators
Chapter 3: Introduction
3.1. Market definition and structure
Chapter 4: Automotive Industry Overview
4.1. Automobile production in India -volume-wise (FY 2019 - FY 2023)
4.2. Automobile sales in India -volume-wise (FY 2019 - FY 2023)
4.3. India Automobile Production Trends
- Production of passenger vehicles in India (FY 2019 - FY 2023)
- Production of commercial vehicles in India (FY 2019 - FY 2023)
- Production of three-wheeler vehicles in India (FY 2019 - FY 2023)
- Production of two-wheeler vehicles in India (FY 2019 - FY 2023)
Chapter 5: Auto Ancillary Market - Overview
5.1. Market size and growth forecast (FY 2020 - FY 2028f)
5.2. Current market scenario
Chapter 6: Auto Ancillary Market - Segmentation
6.1. Auto ancillary sales segmentation - based on category (FY 2023)
6.2. Contribution by major market segments to the overall auto ancillary market revenue (FY 2023)
6.3. Share of auto ancillary product supplied to OEMS based on vehicle type (FY 2023)
Chapter 7: COVID-19 impact analysis
7.1. COVID-19 impact analysis
Chapter 8: Opportunities in the auto ancillary market in India
8.1. Opportunities in the Indian auto ancillary market
8.2. Favourable industrial policies
8.3. Financial Support to the Industry
Chapter 9: Market trends analysis
9.1. Market trends analysis
Chapter 10: Trade analysis
10.1. Export
10.2. Import
Chapter 11: Market influencers
11.1. Market drivers
11.2. Market challenges
Chapter 12: Competitive landscape
12.1.1. Bharat Forge Limited
12.1.2. Bosch Limited
12.1.3. Exide Industries Limited
12.1.4. Gabriel India Limited
12.1.5. Mahindra CIE Automotive Limited
12.1.6. Sundram Fasteners Limited
12.1.7. TVS Motor Limited
12.1.8. ARaymond Fasteners India Private Limited
12.1.9. Autoliv Inflators India Private Limited
12.1.10. Nifco India Private Limited
Chapter 13: Strategic Recommendations
For more information about this report visit https://www.researchandmarkets.com/r/qk7xn1
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