Market Trends of India Automotive Parts Aluminum Die Casting Industry
This section covers the major market trends shaping the India Automotive Parts Aluminum Die Casting Market according to our research experts:
Growing Foreign Direct Investment (FDI) is Driving the Market
The Government of India encourages foreign investment in the automobile sector and has allowed 100% foreign direct investment (FDI) under the automatic route. Some of the recent initiatives taken by the Government of India are :
- In Union Budget 2021-2022, the government introduced the voluntary vehicle scrappage policy, which is likely to boost demand for new vehicles after removing old unfit vehicles currently plying on the Indian roads.
- In February 2021, the Delhi government started the process to set up 100 vehicle battery charging points across the state to push the adoption of electric vehicles.
- The Union Cabinet outlaid Rs. 57,042 crore (USD 7.81 billion) for the automobiles and auto components sector in the production-linked incentive (PLI) scheme under the Department of Heavy Industries.
The automobile industry is supported by various factors, such as the availability of skilled labor at low cost, robust R&D centers, and low-cost production. The industry also provides great opportunities for investment and direct and indirect employment to skilled and unskilled labor. The Indian automotive industry (including component manufacturing) is expected to reach INR 16.16-18.18 trillion by 2026. The Indian automotive industry is expected to record strong growth in 2021-2022, post recovering from the effects of the COVID-19 pandemic. The auto industry is likely to witness positive sales in 2021-22, which further helps the growth of the market.
Indian auto industry is the fourth-largest, globally, owing to which international and national auto manufacturers are expanding their businesses in the country. For Instance,
- In February 2021, MG Motors announced that INR 1,500 crore may be invested in the expansion and localization of its business to increase its production capacity at the Halol plant in Gujarat.
- In June 2020, Chinese vehicle maker, Great Wall Motors Co. Ltd, (GWM) committed an investment of USD 1 billion for its India business also signed a memorandum of understanding (MoU) with the Maharashtra government for investments.
- In February 2020, one of the largest automobile manufacturers in the world, BMW Motorrad, signed a long-term strategic partnership with TVS Motor Company to manufacture sub-500cc motorcycles in Infor the global markets. BMW Motorrad, in collaboration with TVS Motor Company, has launched three products on the 310cc named BMW G 310 R, BMW 310 GS, and TVS Apache RR 310.
Gravity Die Casting is Expected to Witness the Fastest Growth
Gravity Die casting is one of the oldest ways to die casting. This die casting process is used for producing accurately dimensioned, sharply defined, smooth, or textured surface metal parts. The main advantage of gravity die casting is its high speed of production. The reusable die tooling allows for many hundreds of castings to be produced in a day. High definition parts reduce machining costs, and superior surface finish reduces finishing costs.
Simulation-based castings are one of the key trends that may drive the growth of the die casting market in the forthcoming years. The simulation-based casting process is used to produce cost-effective components, have high precision, and are reliable. This casting process involves various benefits, one of which ensures easy and accurate fault detection. Moreover, simulation-based manufacturing results in reduced wastage and operational costs. Additionally, they can predict defects and their location easily, and more precisely than the conventional method.
India has the world's second-largest foundry industry. Foundries in India can produce die casting products that serve a wide range of automobile applications conforming to international standards. The government's focus on Make in India, developing the automotive industry, and the stringent emission norms drive the market for automotive parts aluminum die castings in the country. The castings consumed by the automotive sector accounted for 35% of the country's production.
Lightweight cast components made from aluminum are becoming increasingly popular, as they meet the weight reduction objectives without compromising on strength, reliability, and durability. However, gradual shifting focus toward zinc die casting in cars and parts may hinder the growth of the market.
