The Indian automotive supplier industry, despite being part of the world's 10th largest automotive OEM market, remains highly fragmented and underrepresented in global reports. This article delves into the reasons behind this fragmentation, the challenges faced by Indian suppliers, and the potential for future growth and consolidation.
Despite India's position as the 10th largest automotive OEM market globally, its suppliers are conspicuously absent from major industry reports like the Asian Supplier Report (ASR). This article explores the reasons behind this fragmentation, the challenges faced by Indian suppliers, and the potential for future growth and consolidation. We also highlight some notable Indian suppliers and discuss the industry's prospects for achieving greater global recognition.
In a recent conversation with Edmund Chew, Publisher of SupplierBusiness, it was revealed that Indian supplier companies have not been prominently featured in their reports. SupplierBusiness, under its parent company AutoBusiness, publishes numerous reports on the global supplier industry, including the Asian Supplier Report (ASR). Surprisingly, Indian suppliers, even major players like Bharat Forge and Sundram Fasteners, are not mentioned in the ASR.
The Indian automotive supplier industry is highly fragmented, with numerous suppliers catering to various global automakers. This fragmentation is a result of global car manufacturers setting up operations in India, bringing along their preferred suppliers. For instance:
Indian companies have also developed their own groups of associated suppliers. For example:
Japanese manufacturers prefer Japanese suppliers, while other automakers have their own favorites. This results in a plethora of suppliers for specific components. For instance, in the case of seats, options include Bharat Seats, Krishna Maruti, Harita Grammer, Lear India, and Tata Johnson Controls. Maruti itself sources sheet metal components from at least four major vendors.
Despite the fragmentation, a few Indian suppliers have managed to grow significantly. Notable among them are:
The key questions for the future of Indian suppliers are:
The potential for growth and consolidation in the Indian supplier industry is significant. With the right strategies and investments, Indian suppliers can achieve greater global recognition and become major players in the industry.
The Indian automotive supplier industry, despite its fragmentation, holds immense potential for growth and consolidation. By addressing the challenges and leveraging opportunities, Indian suppliers can achieve greater global recognition and contribute significantly to the global automotive industry.
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This article has been fact-checked and expanded to provide a more detailed and nuanced understanding of the Indian automotive supplier industry.
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