Mumbai: India’s auto component industry is quietly tightening its bolts for a massive growth run, and according to Avendus Capital, the spotlight is firmly on metal forming—the unsung hero behind every engine, gearbox, and chassis.
In its latest industry report, Avendus Capital projects that India’s automotive metal forming market—covering casting, forging, stamping, and machining—is set to grow at an impressive ~12% CAGR, reaching a hefty USD 90–95 billion by FY2030. In simpler terms, the backbone of your car is about to become one of the biggest business stories in India’s automotive ecosystem.
The report highlights a significant shift in global automotive supply chains. The era of “jack-of-all-trades” component suppliers is gradually giving way to highly specialized process-driven manufacturers. These firms, armed with deep metallurgical expertise and precision engineering capabilities, are becoming the new power players—because in modern manufacturing, knowing how to make something is often more valuable than just making it.
Speaking on the trend, Koushik Bhattacharyya, Managing Director and Head of Industrials Investment Banking at Avendus Capital, noted that the sector is moving beyond scale-driven growth into a capability-led consolidation phase. In other words, it’s no longer just about producing more—it’s about producing smarter, sharper, and with surgical precision.
India’s auto component industry has already crossed the USD 80 billion mark in FY25 and has flipped the script by becoming a net exporter, with exports touching around USD 23 billion. This transformation reflects not just growth in volume, but a leap in quality, complexity, and global competitiveness.
A major catalyst behind this surge is the ongoing reshuffle of global supply chains. As automakers and Tier-1 suppliers diversify sourcing due to geopolitical tensions and cost pressures, India is emerging as a reliable manufacturing hub—thanks to its cost advantage, engineering talent, and well-established supplier base.
Interestingly, while the world races toward electrification, traditional internal combustion engine (ICE) components are far from obsolete. The report points out India’s unique “last man standing” advantage in ICE manufacturing. With global players reallocating investments toward EVs, India is stepping in to fill the gap in critical components like crankshafts, gears, and axles. And with over 1.5 billion ICE vehicles still running globally, the aftermarket opportunity is nothing short of विशाल (yes, that big).
Even in the EV era, metal forming remains indispensable. From lightweight structures to high-precision components, these processes are critical across both ICE and electric platforms—proving that while engines may evolve, metal still rules the road.
On the investment front, the sector is heating up. Increased deal activity, participation from global private equity firms, and strategic acquisitions signal a clear trend: investors are betting big on companies with deep process expertise, export focus, and scalable manufacturing capabilities.
So, while flashy EV launches and autonomous tech grab headlines, it’s the humble forging press and casting mold that are quietly shaping India’s automotive future—one component at a time.
