AUTO COMPONENTS

SECTOR

Presented by,
Anand
Anjali
Nandhini
Nivedita
Sanjay Ganesh

What are Auto Components?

Auto components refers to parts of
the Vehicles usually two and four
wheelers.

Different Types of Auto Components

The Auto components are split into
major 5 categories
Engine and its Parts
Transmission and Steering Parts
Suspension and Breaking Parts
Electrical Parts and
Secondary Equipments

Here are some examples for the

types of auto components
Engine
and its
parts
-> Pistons
- >Engine
valves
-> Fuel
Injection
systems
->
Cooling
Systems
-> Power
compone
nts

Transmiss
ion and
Steering
Parts
->Gears
->Wheels
>Steering
systems
->Axels
>Clutche
s

Suspensi
on and
Breaking
Parts
->Break
Assembli
es
->Break
Linings
->Shock
Absorbers
->Leaf
springs

Electrical
Parts

- >Spark
Plugs
->Electric
Ignition
Systems
->Starter
Motors

Secondar
y
Equipme
nts
>Dashbo
ard
Instrume
nts
->Body
and
Chassis
->Fan
Belts
->Die
Casting

AUTO COMPONENT
INDUSTRY IN INDIA
The Indian auto component industry is one among
the few sectors in the economy that has a distinct
global competitive advantage in terms of cost and
quality.
Indias process-engineering skills, applied to redesigning of production processes, have enabled
reduction in manufacturing costs of components.
Today, India has become the outsourcing hub for
several global automobile manufacturers.

SALIENT FEATURES OF INDIAN AUTO

COMPONENTS INDUSTRY
Turnover of the Indian auto component sector stood at
USD35.1 billion in the last financial year.
The Indian automobile market is estimated to become the
third largest in the world by 2030 and will account for
more than 5 per cent of the global vehicle sales.
The total working population of India in Auto components
sector was around 780 million.
Steel is a key raw material used in automobiles. India
being one of the global leaders in steel production
facilitate further growth in the auto components industry.

THE INDIAN AUTO

COMPONENTS MARKET
Original Equipment Manufacturers (OEMs)
Replacement Parts Production and Distribution:
e.g. Air filters, oil fillers and replacement lights
Rubber Fabrication : tires, hoses, belts etc.
The exports of auto components industry has
grown at a rate of nearly 30 per cent over the
last four years.

TOP 5 GLOBAL AUTO COMPONENT

MANUFACTURING COMPANIES
Company

Total
Percenta Percenta
global
ge of
ge of
automoti
Market Market
ve part
in North in
sales (in
America Europe
Millions ,
$)

Percenta
ge of
Market
in
Asia

Percenta
ge of
Market
in
Rest of
the
world

Robert
Bosch

36787

17

52

27

Denso
Corp

34200

16

11

71

Continenta 32800
l AG

21

50

25

Magna
30428
Internation
al Inc.

53

40

TOP 5 INDIAN COMPANIES IN AUTO

COMPNENTS MANUFACTURING SECTOR
Company Name

Sector

Net worth (in

Crores)

Bharat Forge

Castings and
forgings

3495.68

Motherson Sumi

Auto Ancillaries

2433.58

Amtek Auto

Auto Ancillaries

2092.50

Sundaram Fasteners

Fasteners

858.96

EL Forge

Castings and
forgings

747.00

In India

Engine parts
account for 31 per
cent of the entire
product range of the
auto components
sector followed by
drive transmission
and steering parts
(19 per cent)

SOME KEY PLAYERS IN

INDIAN INDUSTRIES

BHARAT FORGE

Key reasons for growth

New relationships with global OEMs by on shoring
components to India
Building capacities ahead of demand
Access to advanced technology and preferred OE
suppliers.
What is next:
To be in the forefront of tech, innovation
Create engineering knowledge at a much lower cost.
It's not a market that waits for you. We learnt to deal with
volatility as the supply chains are very long.
- Baba Kalyani, Chairman

MOTHERSON SUMI SYSTEMS:

Key reasons for growth:
Increased geographical spread as customers (OEMs) give larger business
opportunities
Acquired assets with technology
De-risking from currency fluctuations
Vertical integration.
What is next:
Bring in high quality and high-tech products, currently manufactured
outside India.
Be a globally preferred solutions provider.
Our vision helps make more parts in India by increasing its content per
car and provides global opportunities in the best technology markets. Pankaj Mitalcoo

ORGANIZED AND UNORGANIZED

AUTO COMPONENTS INDUSTRY
The Auto components industry of India is
divided into Organized and unorganized
sectors.
The Organized players form the ACMA
(Auto components manufacturing
association of India).
The number of manufacturing units in the
unorganized sector are far higher than
those in the organized one.
Although lesser in number, the organized
sector accounts for 77 per cent of total
industry turnover.
This is mainly because High-value
precision engineering products are
primarily produced by the organized
sector.

AUTO COMPONENTS EXPORT

STATUS OF INDIA

STRENGTH

WEAKNESS

SWOT
ANALYSI
S
THREAT

OPPORTUNITIES

STRENGTHS
Large work force High availability of Skilled labors
Low Cost of production as the Raw materials are
readily available
Policy support : Continued policy support in the form
of Auto Policy 2002 and National Automotive
Mission
Strong support to R&D through establishment of
NATRIP centre.

WEAKNESS
Competitive Rivalry:
Competition among industry players is intense
as government has already deregulated the sector
Lack of Diversification:
Most of the Indian firms specialize in only one
product market or segment like two-wheeler,
passenger cars or commercial vehicles. Now,
most of the firms are looking to diversify
horizontally.

OPPORTUNITIES
Key Investments and New Tie ups in Auto
component industry:
Investments
in the auto components sector increased during the
current fiscal year
Increasing Export opportunities:
India
is geographically closer to key automotive markets
like the Middle East and Europe compared to other
competitors
Growing working population and expanding middle class
are expected to remain key demand drivers

THREATS
New Entrants: Foreign firms are increasing their
footprints in India
Cheaper imports of components from other
countries is increasing.

FACTORS INFLUENCING THE AUTO

COMPONENTS SECTOR
POSITIVE FACTORS:
1. Market: The ever expanding market space of India is an
added boost for the Auto components manufacturers.
India's projected production is around 8.7mn passenger
vehicles per year by 2020 owing to the growing demand in
the Automobile sector.
2. Government Policies: Ever since the Make in India
campaign, the Indian auto component sector has been in rise.
The government policies have favored a stable growth in the
auto components industry.
The policies have also brought in new foreign companies and
further new technologies into India.

FACTORS INFLUENCING THE AUTO

COMPONENTS SECTOR
NEGATIVE FACTORS:
1.Threat from Global competitors: The Global competitors like China, Taiwan,
Thailand etc., have a well established manufacturing plants and organized
manufacturing sectors.
Cheap Imports from such Global competitors whose products are superior in
Quality and Quantity can put a dent in the Indian Auto components industry.
2.Need for Excellence: India has a large auto components sector. In which there
are large-scale and small-scale manufacturers. Although The key part of the
market is controlled by the large-scale because of their better quality. Still India
lacks in quality compared to its global rivals. So India needs to work on its
excellence of products especially the unorganized auto component sector. This
could further enable more exports and improve the business.

THANK YOU