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The Evolving Auto Landscape

Introduction

The auto components manufacturing industry is the backbone of growth for the automotive sector. Backed by rapid indigenization of OEM sourcing and increasing turnover of the automotive industry, the auto component manufacturing sector in India is placed in a phase of robust growth. Growing at a CAGR of 6.83 % last decade, the industry is further expected to strengthen performance through stimulation of domestic demand and increased exports. While rapid urbanization and increasing spending capacity is fueling domestic growth, cost effective manufacturing, large pool of skilled workers and availability of raw materials provides a consistent cost advantage for exportability. The industry is also receiving improving policy support through establishment of NATRiP centers, 100 per cent FDI allowance and reduction in customs duty for import of electric parts and components. These policy allowances manifest under the larger government agenda to propel this industry as captured in the Automotive Mission Plan 2016-26.

The evolving OEM landscape

Given the nature of the industry, there is a deep connection between the relationship of the automobile and auto components manufacturers. It is only natural that disruptions in the automobile sector will create tremors of change in auto components as well. Taking a broad level view of automotive OEM sector throws up the following industry insights:


 

Authors:

Navneet Rattan - Director - Performance, Rewards and Organization Effectiveness
Sangeet Saurabh - Senior Consultant - Performance, Rewards and Organization Effectiveness​
Abhinav Jain - Senior Consultant - Performance, Rewards and Organization Effectiveness​
Swadha OjhaConsultant - Performance, Rewards and Organization Effectiveness


Get in touch:

Abhishek.jpg Navneet Rattan
Director - Performance, Rewards and Organization Effectiveness
Gurgaon
Email | LinkedIn


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