NEW DELHI — India’s automotive metal forming sector is poised for significant expansion, with the market projected to nearly double to $90–95 billion by FY30, growing at an annual rate of about 12 percent, according to a new report.
The analysis by Avendus Capital said the broader auto component industry—including casting, forging, stamping, and machining—surpassed $80 billion in FY25 and became a net exporter, with outbound shipments reaching around $23 billion.
The growth reflects not only an increase in scale but also a structural shift toward more complex manufacturing processes, higher quality standards, and deeper integration into global supply chains, the report said.
It also highlighted ongoing changes in global automotive supply chains, as original equipment manufacturers and Tier-1 suppliers diversify sourcing amid geopolitical tensions and cost pressures.
India is emerging as a preferred manufacturing destination due to its cost competitiveness, skilled engineering workforce, and established supplier ecosystem.
The report noted that metal-forming processes remain critical across both internal combustion engine (ICE) and electric vehicle (EV) platforms, driven by increasing demand for precision, lightweight components, and advanced manufacturing capabilities.
It also pointed to India’s potential advantage in ICE components as global suppliers shift investments toward electrification and reduce spending on traditional engine manufacturing. This shift is creating a supply gap in key drivetrain components such as crankshafts, gears, and axles.
With more than 1.5 billion ICE vehicles in operation globally, the aftermarket segment offers additional growth opportunities, the report said.
“The Indian auto component sector is moving beyond a scale-driven growth phase into a capability-led consolidation cycle,” said Koushik Bhattacharyya, managing director and head of industrials investment banking at Avendus Capital. “As global supply chains evolve, India is uniquely positioned to capture this opportunity, particularly in core metal-forming segments.”
The sector is also seeing increased deal activity, with growing interest from global private equity firms and strategic buyers. Investors are focusing on companies with strong process expertise, export orientation, and scalable manufacturing platforms, the report added. (Source: IANS)
