If you have a manufacturing facility in the U.S. and are looking to source a wide range of automobile parts, you might consider a make in India trade. This program is designed to make Indian auto parts more competitive and attractive to global OEMs. The country offers favourable manufacturing and export advantages, relative political stability, and abundant human and technological resources. The government’s Make in India program is an additional incentive to manufacture auto parts in the country. It also offers favourable intellectual property protection for global OEMs.
The automotive industry in India has a strong export potential and is a vital component of the Make in India programme. With more than 30 million cars on the road, it is a significant exporter of automotive components. India’s automotive industry accounts for a third of all vehicle production in the world. Moreover, its manufacturing and research capacity is among the highest in the world. During the lockdown, the country’s aftermarket is projected to grow at over 5% annually, significant for auto parts.
Exports are expected to become a more significant share of the overall automotive industry in the coming years. With the help of international purchasing offices, Indian auto-parts manufacturing companies can now access cheap and efficient global components. The country’s low-cost workforce, sizeable domestic market, and strong purchasing power make India an attractive destination for OEMs. Several significant OEMs have established engine manufacturing units in India in the past decade, increasing their purchasing power and competitiveness.
The Indian automotive OEM industry is strong, with a global footprint. Exports of automobile components from India to other countries will grow at a four- to five per cent rate by 2026. By 2030, the global automotive industry is expected to reach US$ 80 billion, a growth of four to five percentage points over the previous fiscal year. As the transportation industry moves towards hybrid and electronic vehicles, Indian auto-component manufacturers will need to adapt.
Auto component industry
The auto component industry is one of the essential industries in India. It contributes almost 20% of the nation’s manufacturing GDP and employs over five million people. Despite the recent growth, the industry has faced significant challenges and obstacles. It is still in the early stages of its development, but it has already made impressive strides. With the right policies, auto manufacturing in India can become a more significant part of the economy.
The global demand for automobile parts is growing at a fast rate, especially in India. Currently, India is a central hub for small engine manufacturers and has become a significant exporter of these products. Ford, Fiat, and General Motors are the largest companies in the country. With a turnover of nearly Rs 1,200 crore, Shriram Pistons has recently started exports of its Gixxer motorcycle.
The country’s domestic market is a vital asset for making auto components. With an increased purchasing power of Indian consumers, the country can attract global OEMs to its manufacturing plants. Its auto component industry is divided into two main sectors: organised and unorganised. The organised sector caters to original equipment manufacturers. The unorganised sector provides aftermarket services. The automotive components industry has grown at an astonishing rate. And with the favourable exchange rate, it is now ranked third in the world and employs over 1.5 million people.
India has become a significant exporter of automobile parts like as Make In India Trade. The industry exports to more than 160 countries and is a reliable source of high-value-added components. As the economy grows, the number of exporters increases. However, the Indian automotive component industry is not growing at a steady pace. The sector is still at a high level of growth and is a vital contributor to the country’s overall prosperity.
The Make In India Trade is investing in a national program to promote automobile components. The scheme aims to make India a world-class manufacturing centre. The Make in India trade program includes the manufacturing of auto components. The Make In India Trade is also developing initiatives to encourage import substitution for foreign auto parts. These include the use of green-certified materials and eco-friendly products. In addition, the PLI programme aims to reduce the costs of parts in the automobile industry and increase its competitiveness. Learn more about making India trade automobile parts.