The Automotive industry in India is leading in many segments- primarily in Passenger Cars, Utility Vehicles, Vans and two Wheelers. The rapidly growing auto market in India is expected to reach USD 300 Bn by 2026. Its Compound Annual Growth Rate (CAGR) of the industry stood at 13 percent over the period FY 2013-14 to FY 2018-19.2 with increasing vehicle demand in India, the aftermarket in 2018-19 raised by 9.6 percent to USD 10.1 Bn from USD 9.2 Bn in 2017-18.3. Automotive aftermarket segment in India is expected to reach USD 32 Bn by 2026.
The Automobile component industry in India is composed of organized and unorganized sector. The organized sector refers to original equipment manufacturers (OEMs) and is engaged in the manufacture of high-value precision instruments. Whereas, the unorganized sectors comprise low-valued products catering to after-market services. Various sub-sectors of the Automobile component industry in India are engine parts, drive transmission & steering parts, body and chassis, suspension and braking parts, equipment, electrical parts and others such as fan belts, die-casting and sheet metal part.