The Indian automotive industry has begun to reach global prominence. Automobile component exports alone recently have reached the US$3 billion mark. According to the Automotive Component Manufacturers Association (ACMA), the automobile components sector is set to grow at a CAGR of 15 percent until 2012, reflecting the growth and influence of India’s exports in the global economy.
The flight of manufacturing to developing countries seems likely only to increase. In today’s economy, automakers in developed markets are forced to innovate, while simultaneously reducing costs. They must meet higher safety standards but also include all new features in vehicles. Despite these growing requirements, the price of automobiles is predicted to remain flat over the next decade. Automakers are frequently turning to the outsourcing of the manufacturing process as a way to meet their production and budget goals. A recent McKinsey & Co. analysis suggests that, as a result, outsourcing in this sector could be worth US$375 billion by 2015, up from US$65 billion in 2002.
Read the rest of this article to find out more about the current state of the automotive industry in India.
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