With the auto industry on the verge of a turnaround for the better, the component manufacturers and ancillaries are looking forward for better days. A report, conducted jointly by, Mckinsey and ACMA, puts the figure at $40 billion by the year 2020.
The report clarified this amount is only exports from India and not for components used with in the country. The Automotive industry was one of the first to adopt globalization and with a positive future for the industry, this seems irreversible.
Presently, the exports are billed at $10 billion while earnings from international assets generate $6 billion. The export figures are expected to quadruple to around $35 – $40 billion while assets will increase to $20 – $22 billion.
If you consider the present top 100 suppliers, there is only one Indian name in the list. This report, titled ‘Capturing the global opportunity, The next imperative for the Indian auto component industry’, expects upto 5 Indian names in the list by 2020.
By investing in proper techniques and strategies, Indian suppliers can compete with global suppliers and make their presence felt in the International market.
In other positive news for the industry, a special delegation from Taiwan visited major auto hubs in the country, including Pune, Jamshedpur and Bengaluru. The delegates also paid a visit to Tata, Mahindra, Volvo, Suzuki, Toyota and Honda plants.
Taiwan is strong in electronics, tire and accessories market for cars but the way Indian component manufacturers have developed themselves to be a global player with world class products, is what they were looking at.
In 2013, Taiwan exported $11.2 billion worth of auto parts and automotive electronics of which $35 million, or 0.32%, were for India.