12-30-2015, 05:16 AM
The Indian auto-components industry has experienced healthy growth over the last few years. Some of the factors attributable to this include: a buoyant end-user market, improved consumer sentiment and return of adequate liquidity in the financial system. India has overtaken US to become the third largest steel producer in the world with a production of 14.56 Million Tonnes in first two months of the year, according to World Steel Associations and had a turnover of USD 38.5 Billion in 2014-15. India’s ‘Make in India’ campaign can help in encouraging local manufacturing of electronic-based components by offering fiscal incentives considering manufacturing of semi-conductors/electronics is generally capital intensive in nature.
Cost competitiveness and being geographically closer to key automotive markets like the ASEAN, Japan, Korea and Europe has led to India as a global hub for sourcing auto components. The investors are interested in producing steel in India as the resources are easily available and the cost of making steel is significantly lower than competitive nations. Another factor that influences an investors’ decision to invest in India is that several global Tier-I suppliers have announced plans to increase procurement from their Indian subsidiaries. The current investors like Bosch (Germany), Delphi (UK), Aisin Seiki Company (Japan), Graziano Trasmissioni (Italy), Denso (Japan), ZF (Germany), Valeo (France), FAG (Germany) and Magna (Canada) are likely to have a positive impact on other investors and the Government’s initiative “Make In India†will help increase productivity in this sector.
The Indian Automobile Industry is expected to reach USD 115 Billion by 2020-21 also India is expected to become the fourth largest automobiles producer globally by 2020 after China, US and Japan.
Cost competitiveness and being geographically closer to key automotive markets like the ASEAN, Japan, Korea and Europe has led to India as a global hub for sourcing auto components. The investors are interested in producing steel in India as the resources are easily available and the cost of making steel is significantly lower than competitive nations. Another factor that influences an investors’ decision to invest in India is that several global Tier-I suppliers have announced plans to increase procurement from their Indian subsidiaries. The current investors like Bosch (Germany), Delphi (UK), Aisin Seiki Company (Japan), Graziano Trasmissioni (Italy), Denso (Japan), ZF (Germany), Valeo (France), FAG (Germany) and Magna (Canada) are likely to have a positive impact on other investors and the Government’s initiative “Make In India†will help increase productivity in this sector.
The Indian Automobile Industry is expected to reach USD 115 Billion by 2020-21 also India is expected to become the fourth largest automobiles producer globally by 2020 after China, US and Japan.
