The Rise of Process Specialists in Auto

India's auto component industry has entered a period of sustained growth, underpinned by robust domestic vehicle production, rising export competitiveness, and accelerating global supply-chain diversification toward India. The sector crossed USD 80 bn in turnover in FY25, and has transitioned from a trade deficit to a trade surplus in components, a clear signal of deepening manufacturing capability. This trajectory puts India on course to double its current share (c. 4%) of global auto component output by 2030.

As this growth unfolds, the sector’s competitive landscape is being redefined. Deep process expertise in casting, forging, stamping, and machining are emerging as key focus areas. These foundational metal-forming processes remain indispensable across both ICE and EV vehicle architectures, accounting for more than 50% of a vehicle’s ex-factory cost.

While EVs eliminate certain engine-specific components, they simultaneously introduce new parts such as battery casings, motor housings, and structural underbody stampings that rely on the same process capabilities. Indian process specialists, backed by decades of metallurgical know-how, cost competitiveness, and entrenched OEM relationships, are uniquely positioned to benefit from this shift.

We estimate the combined domestic and export market for automotive metal-forming components will reach c. USD 94 bn by FY30 at a c.12% CAGR. Domestic growth is being driven by vehicle premiumisation, SUV penetration, and lightweighting-led value uplift, while exports are expected to accelerate at c.18% CAGR as global OEMs relocate sourcing to India amid shrinking manufacturing footprints in Europe and North America. The report also profiles over 30 key players and catalogues 14 recent M&A and PE transactions.