- Auto component manufacturing industry in India to see four times growth by 2026 from 3.5 lakh crore in FY 2018
- Nearly 50 per cent of the domestic auto component players are either making engine parts or the transmission drive, which will have no place in an electric car
According to a report by Businesswire, a research titled “Opportunity and risks for auto component manufacturers in India as EVization becomes inevitable” by ResearchAndMarkets.com, the auto component manufacturing industry in India which was valued at 3.5 lakh crore in the financial year of 2018 is expected to grow by four times by 2026. It also says that in the absence of a well-defined road map for the automobile industry, the future of auto component segment will not be bright if the industry moves in the same path as it is doing now.
The Indian auto components industry comprises 10,000-20,000 home-grown auto components companies and about 50,000 low-technology players, which cater to the aftermarket. The report also says that the transition of the automobile industry towards hybrids and electric vehicles will lead to disruption in the overall automotive market landscape which will also influence the product portfolios of auto component manufacturers.
Thousands of auto component makers may shut down
As per the report, thousands of auto component makers and aftermarket, players risk shutting down in the next eight to ten years as they are not prepared suitably for a future where new and disruptive technologies like electric vehicles and autonomous or self-driving cars take over the roads.
Nearly 50 per cent of the domestic auto component players are either making engine parts or the transmission drive, which will have no place in an electric car, which runs on batteries. The report says that until there is some clarity on the automakers’ technology play in India and the development of the ecosystem that goes along with it through some well-defined policies and notifications, auto and component makers will continue to live in a state of uncertainty.