kambhakt
Registered Member
ridiculous claim
India will surpass US and China to become leader in automobile Industry over the next ten years: Gadkari
- Thread starter Beijingwalker
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Faithfulguy
Elite Member
I guess you are the only Indian in PDF that has this view.
MH.Yang
Trusted Member
I have been engaged in foreign trade in the cemented carbide industry for more than ten years. My experience has taught me that the biggest costs in manufacturing come from logistics and warehousing, with labor costs accounting for a very small portion of the total.
This Indian politician should go to the factory for a few months before talking nonsense.
China has never had the lowest labor costs, but why has it become the factory of the world? Have Indians ever seriously understood this question?
This Indian politician should go to the factory for a few months before talking nonsense.
China has never had the lowest labor costs, but why has it become the factory of the world? Have Indians ever seriously understood this question?
USA is a saturated market. I guess it's wise to think of India at no. 2 after China in a decade
CallSignMaverick
Registered Member
DDG-80
Trusted Member
India auto components industry to cross $80.1 billion revenue in FY25
India’s automotive components industry is expected to cross $80.1 billion in revenue in FY25. The industry is growing at a CAGR of 8 per cent since FY20.According to the Rubix Industry Insights - Automotive components report, the electric vehicle (EV) components contribution doubled to 6 per cent of total production in FY24.
“India’s EV market saw sales grow over 76 per cent CAGR from FY20 to FY24, with projections to maintain this momentum. Between FY20 and FY24, exports saw a 10 per cent CAGR, reaching $21.3 billion, with the US being the largest market. Simultaneously, a trade surplus of $300 million in FY24 underscores India’s strategic shift in global automotive supply chains,” the report said.
Strong 2W growth
Driven by strong growth in the two-wheeler segment, the Automotive Component Manufacturers Association has forecast a growth rate of 7-10 per cent for the industry during FY25.“India is rapidly becoming a vital player in the global automotive supply chain, thanks to robust growth in vehicle production, strong government support and the unwavering commitment of component manufacturers — including a vibrant network of SMEs — to quality and innovation. We believe this momentum will position India as an indispensable sourcing hub for global OEMs, especially as the industry seeks reliable, diversified alternatives. Therefore, supporting SMEs in their modernisation and growth will be crucial to sustaining India’s competitive edge on the global stage. By understanding the key trends, challenges and opportunities in this sector, businesses can make informed decisions and capitalise on the potential of this dynamic industry,” said Mohan Ramaswamy, Co-Founder and Chief Executive Officer, Rubix Data Sciences.
India auto components industry to cross $80.1 billion revenue in FY25
India's automotive components industry poised to surpass $80.1 billion by FY2025, with EV market and exports on the rise.
DDG-80
Trusted Member
Can Indian autocomp exporters challenge Chinese domination?
Commerce and Industry Minister Piyush Goyal has set a formidable target for India's auto component industry: achieving $100 billion in exports by 2030. An examination of the industry’s current position and growth trends by Rubix Data Sciences has now found that this goal is very much within the realm of possibility.
The industry’s growth is driven by three key factors: a booming domestic automotive sector, rising export demand, and government initiatives promoting local manufacturing and technological advancements.
The report provides detailed trade statistics showing steady growth. India's auto component exports stood at $21.2 billion in FY2024, having grown at a 10% CAGR since FY2020.
A detailed breakdown of export categories reveals the industry's diversification. Drive transmission and steering components dominate the export basket, contributing $7.3 billion or 34% of total exports. Engine components form the second-largest category at $4.1 billion, representing 19% of exports. The electrical and electronics segment contributes $2.5 billion, accounting for 12% of the total.
In addition, suspension and braking parts generate $2.4 billion in exports, while body, chassis, and BIW components closely follow at $2.3 billion, each representing 11% of exports. Interior components, excluding electronics, account for $1.2 billion or 6% of exports. The remaining share comprises consumables, rubber components, and cooling systems.
Shradha Suri Marwah, president of the Automotive Component Manufacturers Association, highlights the resilience shown by the autocomponent industry in the face of an overall slowdown in exports and global markets. "Apart from increase in vehicle production, higher value addition from the component sector has led to growth in the auto components sector... while overall merchandise exports from India witnessed degrowth in FY24, auto components exports have grown despite geopolitical challenges and increase in logistics costs," she noted.
India’s Global Market
The Rubix report outlines India's export market concentration, with the top five destinations accounting for 48% of total auto component exports. The United States emerges as the leading market, commanding a 27% share, while Germany accounts for 8%. Turkey, Brazil, and the UK each represent smaller but significant shares at 4%, 3%, and 3% respectively.
The report identifies several interconnected factors driving supply chain shifts toward India. These include the lingering effects of pandemic-induced chip shortages, ongoing tensions from the US-China trade war, disruptions from the Russia-Ukraine conflict, and impacts of the Israel-Palestine crisis. This combination of factors has contributed to a significant production shift away from Europe and China towards Southeast Asia and India, resulting in India recording a trade surplus of $300 million in FY2024.
The industry is faced with several emerging opportunities, particularly in metal casting and forgings, according to the report. The closure of several European metal-casting and forging plants due to economic viability issues has created a market gap that Indian manufacturers are well-positioned to fill. India's competitive advantages in labor and raw material costs, combined with strong technical expertise, make it an attractive alternative for these services in global supply chains.
The Challenges
However, Rubix identifies significant challenges regarding China's dominance in the EV supply chain. China's control of approximately 75% of global battery production capacity and over 50% contribution to global EV production presents a formidable competitive challenge. While the China+1 strategy has benefited India, the report notes that the country hasn't yet seen significant investments directly diverted from China. Instead, India's gains have come from companies seeking to de-risk their operations by increasing their Indian sourcing.
Another challenge is the Red Sea crisis. This crucial maritime route, which handles nearly 30% of global shipping container traffic, is experiencing substantial disruption due to attacks by Yemen-based Houthi militants on shipping vessels. The resulting vessel rerouting has led to port congestion, creating a cascade of challenges for Indian automakers. These include extended production cycles, market delivery delays, inventory accumulation, and increased pressure on working capital.
Steps Needed
The key requirement to support export growth is, unsurprisingly, continued investment into research and development and technology. To this end, notes the report, auto component makers are planning substantial investments of $2.5-3.0 billion in FY2025, primarily focusing on technology upgrades and modernisation. This investment surge is driven by OEMs' push to localise supply chains.
The government too is doing its bit. The Production-Linked Incentive (PLI) scheme has seen its allocation increase to Rs 3,500 crore in Budget 2024-25. As of March 2024, the scheme has approved 18 auto companies under the Champion OEM category and 67 companies under the Component Champion category.
Outlook
The Automotive Component Manufacturers Association expects the industry to grow at 7%–10% in FY2025, based on steady vehicle production, a strong aftermarket, government initiatives, and expanding export activities. The report indicates that Indian auto component manufacturers are receiving an unprecedented volume of export orders and are expanding their capacities to meet rising global demand.
However, achieving the $100 billion export target will require addressing key challenges including technological upgradation, supply chain resilience, and competition from established global players, particularly in the EV component space. The success of this ambitious target will depend on the industry's ability to capitalize on global supply chain shifts while building robust domestic manufacturing capabilities.
Can Indian autocomp exporters challenge Chinese domination? | Autocar Professional
With geopolitical tensions reshaping global automotive supply chains and Western manufacturers seeking alternatives to China, India's component makers face a historic opportunity to establish themselves as a major manufacturing hub, says a new report on the industry.
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DDG-80
Trusted Member
I just came across some interesting stats about India’s auto component exports, and I thought I'd share. It turns out that the biggest chunk of India’s auto parts export market is made up of critical and high-value components. The top categories are drive transmission and steering components, which alone account for a whopping $7.3 billion, and engine components, which follow at $4.1 billion. Even electrical and electronics parts are catching up fast as vehicles become smarter and more connected. Suspension, braking, and chassis parts are also doing really well. India is excelling in the export of parts that are essential, intricate, and technically sophisticated. The focus should now be on leveraging this expertise for EV-specific high-value components, such as batteries, motors, and advanced electronics, to maintain leadership in the evolving market.
Gadkari is a loud mouth fool who is failing at building decent roads, without much foresight. And some thought he was PM material.
P.S: These train corridors are poorly designed and implemented. Time will tell how effective they are. Similarly all the expressways need to decrease the cost of transport significantly.
P.S: These train corridors are poorly designed and implemented. Time will tell how effective they are. Similarly all the expressways need to decrease the cost of transport significantly.
majesticpug
Registered Member
Obama, Modi, Trump
冖_冖
Registered Member
India needs up to $30 bn for EV charging infra to double growth pace: IESA
Last Updated : Nov 21 2024 | 7:37 PM ISTIndia needs investment worth $20-30 billion in the EV charging infrastructure to double the pace of growth of the segment, industry body IESA said on Thursday.
It is a very niche segment which has just started picking up in the country, India Energy Storage Alliance (IESA) President Debi Prasad Dash said.
Sharing his estimates, Dash said the EV charging infrastructure segment is growing at a rate of 25-30 per cent currently in India.
To double this growth, investments worth $20-30 billion would be required, he said at the 'IESA India EV Fast Charging Summit' in the national capital.
On PM E-Drive Scheme, Dash said "We (industry) all are waiting for the scheme to be floated. A few of the things the government is considering before outing the full scheme is they are trying to (figure out) state-wise demand allocation, considering the density of the vehicles in different localities in states and cities."
MH.Yang
Trusted Member
Let me explain it superficially.
Yesterday afternoon I received an order from Kazakhstan for the purchase of some drill bit.
In other countries, it would be difficult to do do dozens of processes such as wire cutting, isostatic pressing, etc. in the same country. You may have to place orders to factories in many countries, and the products have to be mailed many times over. The postage alone is enough to make your cost overrun.
But in my city, I can do it just by driving my car to each factory.
If you're not in my city, no matter how low your labour costs are, your quote will always be much higher than mine.
China's manufacturing advantage has never been labour costs. China's advantage lies in the fact that China is the only country with a full industrial manufacturing chain, but rather in the fact that China's industrial layout is categorised in terms of cities, and that the distribution of industrial chains is designed in a very scientific manner, with very low logistics costs. With the management ability of the Indian government, they can't replicate it with a thousand years.
Guynextdoor
Banned
I know australians are falling in love with Mahindra cars
@MH.Yang @Beijingwalker @bengalcdn @AViet @Faithfulguy
the UK is faling in love with Royal Enfield
And affricans booted the Chinese bike makers out for Indian ones
@MH.Yang @Beijingwalker @bengalcdn @AViet @Faithfulguy
the UK is faling in love with Royal Enfield
And affricans booted the Chinese bike makers out for Indian ones
MrManiac
Registered Member
Data published by the Federal Chamber of Automotive Industries (FCAI) in January showed that 193,433 vehicles made in China were sold in Australia last year – a 57.5 percent increase on 2022 sales. From Jan to July this year,over 130,000 Chinese-built vehicles have been sold in Australia, making China the third-largest source of new vehicles in the country. How many Indian vehicles are sold in Australia? 200?
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