In Hot Pursuit

AUTO COMPONENTS MAKERS ARE SURGING AHEAD ON THE BACK OF ROBUST DEMAND FROM THE INDIAN AUTOMOTIVE INDUSTRY. AND THERE IS NO STOPPING THEM NOW.

- Mitalee Kurdekar

THE INDIAN AUTO COMPONENTS INDUSTRY is on a sprint. With the automotive industry witnessing growth in numbers – a welcome relief from the sluggish demand of a few years ago – in recent times, the resulting demand for components has been very strong. In addition, Government initiatives like Make in India, overseas technology adaptation, and the uniformity in tax structure brought about by the introduction of GST, are all contributing to the industry’s good fortune, helping it to support its ambition of meeting domestic demand, while also generating greater export opportunities.

The India Brand Equity Foundation (IBEF) stated in its June 2018 report on the auto components industry that the Indian auto components industry has experienced healthy growth over the last few years. The report further highlights that the auto components industry accounts for 2.3% of India’s Gross Domestic Product (GDP) and employs as many as 1.5 million people directly and indirectly. A stable government framework, increased purchasing power, large domestic market, and an ever increasing development in infrastructure have made India a favourable destination for investment.

DEMAND DRIVERS

Key players within the auto components industry too have a positive outlook about the current state of affairs, in terms of increasing demand, technology enhancements, new investments, government policy, and a conducive business climate.