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
India has increased import duty on specified auto parts including as engines, engine components, gearboxes and transmission shafts to 15% from 5-10% to encourage local manufacturing. The move will affect luxury car makers like Audi, Volkswagen and BMW, Mercedes who import completely knocked down kits and assemble cars locally here. The move will also raise the price of luxury vehicles by 5 %.