Europe auto supply-chain stress a boon for India cos

The potential value of these opportunities could reach $1.5 bn for Indian firms

- Ayaan Kartik

In FY25, Sona Comstar saw 24% of its revenue coming from Europe, while Motherson saw 15% coming from the region.

Electric vehicle investment write-offs by global auto giants, and a general automotive slowdown in demand, are sending some European auto component suppliers into bankTuptcy, creating a potential business opportunity for Indian parts manufacturers as customers shift orders away from the distressed vendors.

According to Harshvardhan Sharma, group head at Nomura Research Institute, the development is translating into incremental order flows for Indian companies not only from emergency resourcing of distressed European vendors, but also from deliberate long-term reallocation of global platforms.