India's Automotive Metal Forming Industry Set for Robust Growth
Synopsis
India's automotive metal forming market is on track to nearly double by FY30, driven by global supply chain changes and increasing demand for precision manufacturing. This growth reflects a strategic shift in the sector, presenting significant opportunities for investors and manufacturers alike.
Key Takeaways
India's automotive metal forming market is projected to grow to $90-95 billion by FY30.
The sector is witnessing an annual growth rate of around 12% .
India's auto component industry became a net exporter in FY25.
There is a strategic shift towards precision manufacturing.
Investors are increasingly interested in businesses with strong export capabilities.
New Delhi, April 2 (NationPress) The automotive metal forming industry in India is set to almost double, reaching $90-95 billion by FY30, with a projected annual growth rate of around 12 percent. This growth is driven by global supply chain adjustments that are emphasizing value towards process-oriented manufacturers, according to a recently released report.
According to an analysis by Avendus Capital, India's auto component sector, which includes casting, forging, stamping, and machining, surpassed $80 billion in size during FY25, marking a significant milestone as it became a net exporter with exports totaling approximately $23 billion.
This shift not only indicates an expansion in scale but also a fundamental enhancement in manufacturing complexity, quality benchmarks, and global integration.
The report also pointed out a significant transformation taking place in global automotive supply chains. Original equipment manufacturers and Tier-1 suppliers are diversifying their sourcing strategies in response to geopolitical challenges and cost pressures.
India is increasingly recognized as a favorable manufacturing hub, supported by its cost advantages, skilled engineering workforce, and a well-established supplier network.
Additionally, the study emphasized that essential metal-forming processes are crucial for both internal combustion engine and electric vehicle platforms, with growing demands for precision, lightweight components, and complexity.
It also noted India's potential competitive edge in ICE components as global suppliers pivot investments towards electrification, thereby creating a supply gap in drivetrain parts such as crankshafts, gears, and axles.
With over 1.5 billion ICE vehicles in the worldwide vehicle fleet, the aftermarket presents an additional opportunity for growth.
"The Indian auto component sector is transitioning from a phase dominated by scale to one focused on capability-driven consolidation," stated Koushik Bhattacharyya, Managing Director and Head of Industrials Investment Banking at Avendus Capital. "As global supply chains evolve, India is perfectly positioned to seize this opportunity, particularly in vital metal-forming sectors."
From a deal-making perspective, the sector is witnessing increased interest from global private equity firms and strategic buyers, with investors keen on enterprises that possess deep process knowledge, an export focus, and scalable manufacturing capabilities.
Point of View
I view the growth of India's automotive metal forming sector as a pivotal moment for the country's manufacturing future. The emphasis on advanced capabilities and process-led manufacturing reflects a strategic response to global market demands, highlighting India's potential as a key player in the automotive supply chain.
NationPress
5 Aug 2026
Frequently Asked Questions
What is the projected market size of India's automotive metal forming sector?
India's automotive metal forming sector is expected to reach approximately $90-95 billion by FY30.
What factors are driving growth in this sector?
Growth is driven by global supply chain realignments and increasing demand for precision manufacturing.
How has India’s auto component industry performed recently?
The auto component industry in India surpassed $80 billion in FY25 and became a net exporter.
What is the significance of ICE vehicles in this context?
With over 1.5 billion ICE vehicles globally, there is significant aftermarket potential in the sector.
What opportunities exist for investors in this sector?
Investors are focusing on businesses that demonstrate deep process expertise and scalable manufacturing platforms.
