New Delhi, April 2 The domestic automotive metal forming market of India is projected to nearly double to $90-95 billion by FY30, growing at around 12 per cent annually, as global supply chain realignments drive value concentration toward process-led manufacturers, a report has said.
As per Avendus Capital analysis, India's auto component industry -- casting, forging, stamping and machining -- crossed $80 billion in size in FY25 and turned a net exporter during the year, with exports reaching approximately $23 billion.
The transition reflects not just scale expansion but a structural upgrade in manufacturing complexity, quality standards, and global integration, it said.
The report also highlighted that deeper shift underway in global automotive supply chains, where original equipment manufacturers and Tier-1 suppliers are diversifying 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 flagged 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 prioritising businesses with deep process expertise, export orientation, and scalable manufacturing platforms.
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