New Delhi, April 2 – The Indian domestic automotive metal forming market is projected to nearly double to $90-95 billion by FY30, growing at around 12% annually, as global supply chain realignments drive value concentration toward process-led manufacturers, a report has said.
According to Avendus Capital analysis, India's auto component industry – including casting, forging, stamping, and machining – reached a size of $80 billion in FY25 and turned into a net exporter during the year, with exports reaching approximately $23 billion.
This transition reflects not just scale expansion but also a structural upgrade in manufacturing complexity, quality standards, and global integration, it said.
The report also highlighted a deeper shift underway in global automotive supply chains, where original equipment manufacturers and Tier-1 suppliers are diversifying their sourcing bases amid geopolitical uncertainties and cost pressures.
India is emerging as a preferred manufacturing destination, backed by cost competitiveness, engineering talent, and an established supplier ecosystem.
The report also noted that core metal-forming processes remain indispensable across both internal combustion engine and electric vehicle platforms, with rising requirements for precision, lightweighting, and complexity.
It also highlighted India's potential advantage in ICE components as global suppliers redirect capital toward electrification and scale back investments in ICE-related manufacturing, creating a supply gap in drivetrain components such as crankshafts, gears, and axles.
With over 1.5 billion ICE vehicles in the global car parc, the aftermarket opportunity adds further upside.
"The Indian auto component sector is moving beyond a scale-driven growth phase into a capability-led consolidation cycle," said Koushik Bhattacharyya, Managing Director and Head of Industrials Investment Banking at Avendus Capital. "As global supply chains evolve, India is uniquely positioned to capture this opportunity, particularly in core metal-forming segments."
From a deal activity standpoint, the sector is seeing rising interest from global private equity firms and strategic acquirers, with investors prioritizing businesses with deep process expertise, export orientation, and scalable manufacturing platforms.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.