Dublin, Feb. 18, 2022 (GLOBE NEWSWIRE) -- The "Auto Ancillary Market in India 2021" report has been added to ResearchAndMarkets.com's offering.
The auto ancillary market is anticipated to reach INR 7,756.98 Bn by FY 2027, expanding at a compound annual growth rate (CAGR) of ~15.35% during the FY 2022-FY 2027 period.
In terms of revenue, the OEM suppliers segment holds the largest market share (~55.98%), followed by exports and aftermarket. However, in terms of the number of players, the market is dominated by the aftermarket segment.
The auto ancillary market deals with the production and sale of intermediate equipment and automotive parts that are used in automobile manufacturing. It is a crucial part of the automotive industry in India. It is segmented into organized and unorganized sectors. The organized sector serves original equipment manufacturers (OEMs) and deals in high-value instruments.
The unorganized sector provides the aftermarket with low-value tools and parts. The business is moving toward the production of electric vehicle parts and components. It is expected that by 2025, the auto ancillary market in India will become the third-largest in the world.
Market Insights:
The performance of the automotive industry impacts the auto ancillary market. The auto sector has been facing a slump since FY 2019, mostly due to weak consumer sentiments and tightening of liquidity in non-banking financial companies and other lending institutions. Furthermore, it was affected by strict lockdown measures in the wake of the COVID-19 pandemic.
However, with the enactment of new regulatory measures and adoption of advanced technologies, the sector is expected to gain momentum from 2021 onwards.
Impact of COVID-19:
Auto ancillary producers faced the challenge of subdued demand and manufacturing restrictions induced by COVID-19-related safety measures. The Society of Indian Automobile Manufacturers (SIAM) reported a 14.07% reduction in automobile production in FY 2021.
Following the decline in sales, automobile manufacturers curtailed orders to auto ancillary suppliers and producers. Export of auto ancillary products also dropped in FY 2021 due to international production cuts. However, the market started expanding at a robust pace after the third quarter of FY 2021 with the gradual growth of the automobile industry.
Government initiatives:
The government has formulated various policies to boost the growth of the market. Auto Policy 2002, Automotive Mission Plan 2016-2026, National Automotive Testing and R&D Infrastructure Project (NATRIP), and National Electric Mobility Mission Plan 2020 (NEMMP), are a few significant programs launched by the government.
Other initiatives include providing R&D incentives for industry- and private-sponsored research, granting export subsidy under the Merchandise Exports from India Scheme (MEIS), and offering incentives to players operating in Special Economic Zones.
Key growth drivers of the market:
- The enforcement of BS-VI standards of safety and emission is anticipated to help the export market expand during the forecast period for the benefit of auto component players in India
- Foreign players prefer India because it is a cost-effective location for manufacturing, which bodes well for the auto ancillary market
Key Deterrents to the Growth of the Market:
- Even though annual production of the overall automotive industry has improved, consumption in recent quarters (2019 onwards) experienced a decline mainly due to a liquidity crisis for Non-Banking Financial Companies (NBFCs)
- Moreover, the lack of research and development infrastructure and quality standards is a threat to the market
Competition analysis:
The auto ancillary market is highly fragmented, the organized sector (OEMs) being dominated by leading players such as Bharat Forge Limited, Mahindra CIE Automotive Limited, Bosch Limited, and Sundram Fasteners Limited.
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 in India - An Overview
4.1. Automobile Production - Volume-Wise (FY 2017-FY 2021)
4.2. Automobile Sales - Volume-Wise (FY 2017-FY 2021)
4.3. Domestic Automobile Sales Based on Vehicle Type (FY 2020)
4.4 Automobile Production Trends
- Passenger Vehicles (FY 2017-FY 2021)
- Commercial Vehicles (FY 2017-FY 2021)
- Three-Wheeler Vehicles (FY 2017-FY 2021)
- Two-Wheeler Vehicles (FY 2017-FY 2021)
Chapter 5: Auto Ancillary Market in India - An Overview
5.1. Market Size and Growth Forecast (FY 2019-FY 2027E)
5.2. Impact of Atmanirbhar Bharat Abhiyan or Self-Reliant India Mission
Chapter 6: Auto Ancillary Market Segmentation
6.1. Auto Ancillary Market Segmentation Based on Stakeholders (FY 2021)
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 Auto Ancillary Market in India
8.2. Favorable Industrial Policies
8.3. Financial Support to the Industry
8.4. Investments in the Industry
Chapter 9: Market Trends Analysis
9.1. Market Trends Analysis
Chapter 10: Trade Analysis
10.1. Export of Auto Ancillary Products
10.2. Import of Auto Ancillary Products
Chapter 11: Market Influencers
11.1. Market Drivers
11.2. Market Challenges
Chapter 12: Competitive Landscape
12.1. Amtek Auto Limited
12.2. Bharat Forge Limited
12.3. Bosch Limited
12.4. Exide Industries Limited
12.5. Gabriel India Limited
12.6. Mahindra Cie Automotive Limited
12.7. Sundram Fasteners Limited
12.8. Tvs Motor Limited
12.9. Nifco India Private Limited
12.10. Araymond Fasteners India Private Limited
- Company Information
- Business Description
- Products/Services
- Key People
- Financial Snapshot
- Key Ratios
- Key Financial Performance Indicators
- Key Business Segments
- Key Geographical Segments
Chapter 13: Recent Developments
13.1. Recent Developments
Chapter 14: Appendix
For more information about this report visit https://www.researchandmarkets.com/r/xgmls7
