DUBLIN--(BUSINESS WIRE)--The "Auto Ancillary Market in India 2022-2027" report has been added to ResearchAndMarkets.com's offering.

The auto ancillary market is anticipated to reach INR 7,294.99 Bn by FY 2027, expanding at a compound annual growth rate (CAGR) of ~12.06% during the FY 2023 - FY 2027 period.

The auto ancillary market deals with the production and sale of intermediate equipment and automotive parts that are used in automobile manufacturing. It is a crucial part of the automotive industry in India.

It is segmented into organized and unorganized sectors. The organized sector serves original equipment manufacturers (OEMs) and deals in high-value instruments. The unorganized sector provides the aftermarket with low-value tools and parts.

By 2025, the entire Indian auto components market, which presently contributes 2.3% of India's GDP, is expected to overtake its rivals to take the third-place spot internationally

Market insights:

The performance of the automotive industry impacts the auto ancillary market. The auto sector has been facing a slump since FY 2019, mostly due to weak consumer sentiments and tightening of liquidity in non-banking financial companies and other lending institutions.

Furthermore, it was affected by strict lockdown measures in the wake of the COVID-19 pandemic. However, with the enactment of new regulatory measures and adoption of advanced technologies, the sector is expected to gain momentum from 2021 onwards.

Engine components, body/chassis, BiW and suspension braking components made up nearly 50% of the total auto ancillary sales in FY 2022. Despite supply-side problems, the auto component market performed impressively during FY 2022 as vehicle sales and exports gradually gained momentum month after month

Impact of COVID-19:

Auto ancillary producers faced the challenge of subdued demand and manufacturing restrictions induced by COVID-19-related safety measures. The Society of Indian Automobile Manufacturers (SIAM) reported a 14.07% reduction in automobile production in FY 2021.

Following the decline in sales, automobile manufacturers curtailed orders to auto ancillary suppliers and producers. Export of auto ancillary products also dropped in FY 2021 due to international production cuts. However, the market started expanding at a robust pace after the third quarter of FY 2021 with the gradual growth of the automobile industry.

Government initiatives:

The government has formulated various policies to boost the growth of the market. Auto Policy 2002, Automotive Mission Plan 2016-2026, National Automotive Testing and R&D Infrastructure Project (NATRIP), and National Electric Mobility Mission Plan 2020 (NEMMP), are a few significant programs launched by the government.

Other initiatives include providing R&D incentives for industry- and private-sponsored research, granting export subsidy under the Merchandise Exports from India Scheme (MEIS), and offering incentives to players operating in Special Economic Zones.

Key growth drivers of the market:

The enforcement of BS-VI standards of safety and emission is anticipated to help the export market expand during the forecast period for the benefit of auto component players in India

Foreign players prefer India because it is a cost-effective location for manufacturing, which bodes well for the auto ancillary market

Key deterrents to the growth of the market:

Even though annual production of the overall automotive industry has improved, consumption in recent quarters (2019 onwards) experienced a decline mainly due to a liquidity crisis for Non-Banking Financial Companies (NBFCs)

• Moreover, the lack of research and development infrastructure and quality standards is a threat to the market

Competition analysis:

The auto ancillary market is highly fragmented, the organized sector (OEMs) being dominated by leading players such as

• Bharat Forge Limited
• Mahindra CIE Automotive Limited
• Bosch Limited
• Sundram Fasteners Limited.

Key Topics Covered:

Chapter 1: Executive summary

Chapter 2: Socio-economic indicators

Chapter 3: Introduction

3.1. Market definition and structure

Chapter 4: Automotive Industry Overview

4.1. Automobile production in India - volume-wise (FY 2018 - FY 2022)

4.2. Automobile sales in India - volume-wise (FY 2018 - FY 2022)

4.4 India Automobile Production Trends

Production of passenger vehicles in India (FY 2018 - FY 2022)

Production of commercial vehicles in India (FY 2018 - FY 2022)

Production of three-wheeler vehicles in India (FY 201 - FY 2022)

Production of two-wheeler vehicles in India (FY 2018 - FY 2022)

Chapter 5: Auto Ancillary Market - Overview

5.1. Market size and growth forecast (FY 2020 - FY 2027e)

5.2. Current market scenario

Chapter 6: Auto Ancillary Market - Segmentation

6.1. Auto ancillary sales segmentation - based on category (FY 2022)

Chapter 7: COVID-19 impact analysis

7.1. COVID-19 impact analysis

Chapter 8: Opportunities in the auto ancillary market in India

8.1. Opportunities in the Indian auto ancillary market

8.2. Favourable industrial policies

8.3. Financial Support to the Industry

Chapter 9: Market trends analysis

9.1. Market trends analysis

Chapter 10: Trade analysis

10.1. Export of auto ancillary products

10.2. Import of auto ancillary products

Chapter 11: Market influencers

11.1. Market drivers

11.2. Market challenges

Chapter 12: Competitive landscape

12.1. Amtek Auto Limited

12.2. Bharat Forge Limited

12.3. Bosch Limited

12.4. Exide Industries Limited

12.5. Gabriel India Limited

12.6. Mahindra CIE Automotive Limited

12.7. Sundram Fasteners Limited

12.8. TVS Motor Limited

12.9. Nifco India Private Limited

12.10. ARaymond Fasteners India Private Limited

For more information about this report visit https://www.researchandmarkets.com/r/d4yf4a

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

Contacts

ResearchAndMarkets.com

Laura Wood, Senior Press Manager

[email protected]
For E.S.T Office Hours Call 1-917-300-0470

For U.S./ CAN Toll Free Call 1-800-526-8630

For GMT Office Hours Call +353-1-416-8900