Market insights:
In 2017, the government allowed 100% FDI for manufacturing automotive bearings, under the automatic route. In 2018, GST on automotive bearing products were slashed. These factors contributed to the growth of the automotive bearing market in India. In 2019, the market was valued at INR 70 Bn, and is anticipated to reach INR 156.80 Bn by 2024, expanding at a compound annual growth rate (CAGR) of ~18.01%, during the 2020-2024 period. Government policies like Make in India, Automotive Mission Plan, and National Automotive Testing and R&D Infrastructure Project (NATRIP) have also had positive impact on the market. Increase in the production volume of vehicles in the country and the enforcement of the Bharat Stage-VI (BS-VI) norms have led to the soaring demand for automotive bearings. With BS-VI becoming mandatory from 2020, the automotive bearing market is headed for growth with a multiplier effect, likely to happen as the demand for new vehicles and engines picks up. Nonetheless, increase in the cost of raw materials, decline in consumers’ overall consumption level, and the presence of counterfeit products in the market are impeding market growth.

Competition analysis:
The automotive bearing market is highly fragmented with small players like Bimetal Bearings, SKF India and NRB Bearings. Players in the market are mostly of identical workforce volume and financial strength. However, a latent rivalry exists among the players in the market. With increased demand for electric vehicles comprising light-weight bearings, almost every company is aiming to use advanced raw materials like alloys of different grades and ceramics in the production of bearings, and are trying to adopt advanced forging techniques in their production processes to meet the changing requirements of consumers.

Companies covered:
• Austin Engineering Company Limited
• Bimetal Bearings Limited
• Menon Bearings Limited
• NRB Bearings Limited
• Schaeffler India Limited
• SKF India Limited
• Timken India Limited
• Tata Bearings Limited
• National Engineering Industries Limited
• KCI Bearings (India) Private Limited

The post Automotive Bearing Market in India 2020 first appeared on CRI Report.

Key growth drivers of the market:
• The enforcement of BS-VI standards of safety and emission is expected to help the export market grow for the benefit of auto component players in India during the forecast period
• Further, India is growing as a cost-effective manufacturing base, owing to its preferable location for foreign players to set up their manufacturing units, thereby augmenting the development of the auto ancillary market in India
Key deterrents to the growth of the market:
• Even though there has been a growth in annual production for the overall automotive industry, consumption in recent quarters (2019 onwards) experienced a decline due to liquidity crisis for Non-Banking Financial Companies (NBFCs), rise in automotive acquisition costs and high goods and service tax (GST) rates
• Moreover, lack of research and development infrastructure and quality standards present a considerable threat to the auto ancillary industry in India

Competition analysis:
The Indian auto ancillary market is highly fragmented, the organized sector (OEMs) being dominated by a few major players like Bharat Forge Limited, Mahindra CIE Automotive Limited, Bosch Limited and Sundram Fasteners Limited. The unorganized sector consists of the aftermarket segment, where most of the small and medium enterprises (SME) are from the tier II and tier III cities.
Companies covered:
• Amtek Auto Limited
• Bharat Forge Limited
• Bosch Limited
• Exide Industries Limited
• Gabriel India Limited
• Mahindra CIE Automotive Limited
• Sundram Fasteners Limited
• TVS Motor Limited
• Nifco India Private Limited
• ARaymond Fasteners India Private Limited

The post Auto Ancillary Market in India 2019 first appeared on CRI Report.