The Indian automobile sector has emerged as a ‘high growth sector’ and is ranked 6th largest in the world with an annual production of over 23 million units. India is home to the largest motorcycle manufacturer and 5th largest truck manufacturer in the world.
The global automobile players are looking to leverage India’s cost-competitive manufacturing practices with an aim to explore export opportunities. Exports from India grew at the rate of 4.5% and reached more than 650,000 units during 2014-15 over previous year. India is among the largest exporter of passenger cars to Europe. Hybrid vehicle development is the next focus area in the Indian automotive industry.
The Indian auto component sector is growing at the rate of 13 percent per year and offers a comprehensive product range, consisting of approximately 20,000 components. Many global OEMs and Tier 1 companies have started sourcing components from India. India has the largest number of Deming Award winning companies outside Japan in the auto component sphere and proven practices such as 5S, TPM, TQM and JIT are used by companies.
Top auto multinational players like Ford, Daimler, Hyundai, Toyota and Suzuki have increased their India investment plans and their India operations have become an important development hub.