Index : 1,813 | 1Yr : +9.64% | 1Mo : +2.98%
Category : Sectoral Trackers
Min Investment : 5,893
The size of the auto components industry is around USD 40 billion and is expected to reach USD 115 billion by 2020. It employs of almost 20 million people and generates about 7% of India's GDP. This number is expected to double within a decade.
The ever increasing demand for automobiles indirectly increases demand for auto components. Foreign Direct Investments (FDI) are now on the rise and large investments have been made in India. The Automotive Mission Plan 2016-2026 by the government seeks to develop a more robust and evolving ecosystem to prepare India to cope with innovations in electronics, design and engineering.
The export market is very large and in the next 10 years, it has the potential to become the global hub for auto component manufacturing since India is geographically closer to the growing markets in middle-east and Europe. The availability of skilled labour, low costs and locally sourced materials give India a competitive edge in this domain. Invest in promising companies which can capitalize on these benefits.