AAA caters to the leading auto majors including Honda Motorcycle & scooter, Hero Moto Corp, Denso, Magneti Marelli , UFI filters etc.
Indian auto ancillary industry has grown by 11% in the financial year 2014-15. It has achieved a turnover of USD 38.5 billion and has been growing in such fashion for the last six years. The above data includes all type of auto components from OEM supplies, aftermarket to exports. The industry is expected to reach a turnover of USD 100 billion by end of 2020. It has braced several storms with cost saving initiatives, improving quality and through exports. Of the total exports, 23.2 % goes to North America, 25.2 % goes to Asia while 36.9% goes to European markets.
Indian Auto Ancillary Industry, a key player which grows in tandem with its highly visible and tracked auto industry. India with high quality manufacturing expertise and low manufacturing cost has resulted with global majors like Bosch, Visteon, Valeo, Bosch, Magna, Federal-Mogul Corporation and Denso have set up shop. Bosch is the leader in the auto ancillary industry.
To grow the industry, govt of India has initiated several policies in the recent years. Formation of National Automotive Testing and R&D Infrastructure Projects (NATRIP) and Automotive Mission Plan 2006-16. FDI upto 100% is allowed in this segment. The segment contributes around 2.3% to the total GDP of the country.
Drivers for the industry :-
Aftermarket remains lucrative for the segment. Low scrappage of vehicles res
Growing success of models with automated manual transmission like Celerio, Zest has made auto component players like Bosch and Drive Systems Design to take a close look at Indian market. They are studying now to design affordable drive systems specific for Indian market. While vehicles with clutch-less transmission are more convenient to drive, especially on India's congested roads, the high price of automatic vehicles, 20-35% more than those with manual transmission, has made India's cost-conscious auto buyers stay away.
Mahindra has already developed a AMT technology with global major Ricardo for its SUV's . It is more likely that future models will have AMT as a part of their variants by default. Italian company Magneti Marelli is the sole supplier of AMT systems in India.