The Indian automotive metal forming market is forecasted to almost double to $90-95 billion by FY30, with an annual growth rate of about 12%, driven by global supply chain adjustments favoring process-led manufacturers. According to Avendus Capital, India’s auto component industry, encompassing casting, forging, stamping, and machining, surpassed $80 billion in FY25 and became a net exporter, with exports hitting around $23 billion.
This growth signifies not just an increase in scale but also a fundamental enhancement in manufacturing intricacy, quality benchmarks, and global connectivity. The report emphasizes a significant transformation occurring in global automotive supply chains, with original equipment manufacturers and Tier-1 suppliers broadening their sourcing footprints due to geopolitical uncertainties and cost constraints.
India is increasingly becoming a favored manufacturing hub due to its cost competitiveness, skilled engineering workforce, and well-established supplier network. The report underscores the critical role of core metal-forming processes in both internal combustion engine and electric vehicle domains, with a growing demand for precision, lightweighting, and complexity.
Furthermore, it points out India’s potential advantage in internal combustion engine components as global suppliers pivot investments towards electrification, creating a supply shortage in drivetrain elements like crankshafts, gears, and axles. With a significant number of internal combustion engine vehicles globally, there is an additional opportunity in the aftermarket segment.
Koushik Bhattacharyya, Managing Director and Head of Industrials Investment Banking at Avendus Capital, mentioned that the Indian auto component sector is transitioning from a growth phase driven by scale to one led by capabilities. He highlighted India’s unique position to seize the evolving global supply chain dynamics, especially in core metal-forming sectors. The industry is witnessing heightened interest from global private equity firms and strategic buyers, focusing on firms with profound process expertise, export focus, and scalable manufacturing capabilities.
