India is expected to soar higher than even the fastest-growing economies of the world over the next decade. Simultaneously, automotive original equipment manufacturers (OEMs) and components manufacturers across the country are also all set to achieve international prominence. The laser cut bend metal parts manufactured by Indian manufacturers are being received well by customers the world over. However, the future of automotive OEMs and component manufacturers is shaped by a large number of trends and new policies.
What kind of new opportunities will these industry trends create, and how can the companies producing metal parts by laser cutting capture the market share? This blog is going to discuss everything in greater detail in the following points:
A look at some trends that are shaping the automotive industry
As almost all the leading automotive components manufacturers are all set to shine in the global and domestic markets by ramping up their performance consistently, they need to account for a large number of new trends along with 4 stated below dimensions:
The market dynamics are constantly shifting because of the fast-changing manufacturing locales, models and priorities of operations, and demands of the customers
The ever-changing needs of the OEMs who have become more specific and choosey concerning the more agile and quick component inputs with the dynamisms of processes as well as timelines
Technological shifts and advancements are also changing the revenue pool while triggering new rivals as well as inviting the need for new cooperations and collaborations
An ever-evolving regulatory, as well as business environment is creating the backdrop for it all.
A promising future
Development pointers illustrate good faith for India — it could arise as the world's fifth-biggest economy soon. What's more, it will become a USD 4.7 trillion economy in 2023. The expectations of a developing purchaser class, improved simplicity of carrying on with work, and growing infrastructure — such great elements could push the nation forward, and with it, India's automotive industry too. The Indian automotive OEM industry is as of now in a solid position. Universally, it is at the front of many sections — driving in bikes, cars, utility vehicles, and tractors.
The industry aspires to significantly increase vehicle deals by 2026, from 26 million to 65 million to 76 million vehicles, across segments. These could be the conclusive tailwinds for the Indian automotive parts industry, which has aspirations of its own by 2026 — to twofold the commitment to assembling Gross Domestic Product with a four-crease development in size and a six-overlap development in exports. While industry turnover has dramatically multiplied (in Rupee terms) in the previous ten years, India's commitment to worldwide turnover is around 3 percent. There is significant scope for development in an industry being molded by different patterns.
Best value investors in auto components
There are hundreds of vehicle parts manufacturers in India. The best ten organizations represent just 6% of the absolute portion of the overall industry. This intends that there is an enormous chance to put resources into small organizations that are less known yet will probably develop. The best part is that these speculations are not risky because of economies of scale and strict guidelines in India. In particular, these small-sized organizations have a low obligation when compared to their bigger rivals — establishing a more secure investment climate.
Growth of Electric Vehicles
In 2015, around 5 lakh hybrid and electric vehicles were sold around the world. That is up 30% from 2014. That is because an ever-increasing number of individuals are searching for eco-accommodating choices in comparison to internal combustion vehicles, particularly in China and India. As an ever-increasing number of nations begin to make strides toward prohibiting gasoline-run vehicles through and through, interest in electric vehicles will keep on rising. In 2017, around 7.5 lakh electric vehicles were sold in India. This was multiple times higher than in 2016 and 2015. By 2025, around 8-10 million electric vehicles are supposed to be sold in India. The government expects to have all vehicles run on power by 2030. Aside from public vehicles, states like Maharashtra need to go completely electric by 2030 and Uttar Pradesh by 2035.
India- A Leading Global Automotive Manufacturing Hub
India's automotive industry has quickly developed into a major global manufacturing hub, with predictable year-on-year development. Today, India is home to the world’s leading automotive components manufacturers. India's automotive industry accounts for around 7% of its Gross Domestic Product (GDP), making it quite possibly the most significant industry. The industry employs millions of people directly or indirectly. Notwithstanding immediate business, these organizations spend about $12 billion on innovative work consistently - contributing altogether to the Research and development economy in India by and large.
The growing contribution of multinational car Original Equipment Manufacturers (OEMs) in the Indian auto components business has brought about a significant expansion in component localization. Over the past 10 years, the government has also done a lot on the front of FDI to accelerate the growth of this sector. Due to the ease of doing business, a large number of OEMs are moving to India to seek infinite opportunities in the ever-growing market.
The stature of SAN Automotive in India’s auto component manufacturing industry
SAN Automotive is a well-recognized and respected auto component manufacturer and supplier in India. The company, over the years, has carved a niche for itself both in the national and global markets based on its unwavering commitment to delivering supreme quality products. The company is always laser-focused on continuous improvement in quality, maximum customer satisfaction, on-time delivery, and cost-effectiveness.
Technologically advanced infrastructure and manufacturing excellence have established SAN Automotive among the largest two wheeler spare parts manufacturing companies in India. For over two decades, SAN Automotive has delivered excellence in the industry through its dedication to staying technologically ahead of the two-wheeler spare parts market. Today, SAN Automotive is manufacturing and supplying a comprehensive range of products for 2 Wheelers, 4 Wheelers, Construction Equipment Vehicles, and the Agri Industry.