The Indian auto components industry is one of the fastest growing industries. Coupled with growing demand and technological advancements, the auto components industry in India has emerged as a key market in Asia as well as the world. A joint report of Automotive Component Manufacturers Association of India (ACMA) and McKinsey forecasts automotive component to be a $100 billion industry by 2020, compared with about $35.1 billion today. The report predicts revenue to come from both local sales and exports. Currently, India is ranked 22 among global component exporting countries. According to the McKinsey report, India will jump to 9th spot in exports by 2020. These figures provide a rosy picture of the industry in future.
Other components, accessories and spares segments are also on the growth path in the backdrop of a slowly but steadily growing construction equipment and off-highway vehicles market in India. The latest AT Kearney report indicates that infrastructure spending is expected to grow from 7.2 per cent of GDP in 2012 to 9 per cent by 2017. This is likely to spur the demand for earthmoving and construction equipment, and if the industry´s full potential is realised, the result could be a $16 billion to $21 billion industry by 2020.
The trend of major OEMs in construction equipment and off-highway vehicles setting up new facilities in India to take advantages of the emerging positive market trends here is continuing. The latest one is the JCB´s new facility inaugurated in Jaipur on November 14.
Prime Minister Narendra Modi´s vision of ´Make in India´ has received a whole-hearted welcome from Indian as well as foreign industry with leading companies/industry bodies from the US, Japan, China etc, evincing interest to invest more in India.
With many OEM facilities coming in and a positive environment emerging for fresh investments, components, accessories and spares industry has better days ahead in terms of bringing in new products, technologies and solutions to the growing OEM market.
The just around-the-corner mega event bC India 2014 will be a platform to cash in the positive opportunities emerging in the construction and earthmoving equipment industry. bC India is the first major exhibition after the change of government in India and naturally expectations are very high. All in all, the industry is hopping that better days are ahead.