May 28, 2024

India Automotive Stamping Market Is Expected To Be Flourished By Growing Automotive Production

Automotive stamping is a manufacturing process used to convert flat sheet metals into specific shapes and components through a mechanical process. It is widely used in the automotive industry to manufacture vehicle body parts, such as doors, hoods, fenders, sides, etc. Stamping enables the mass production of consistent automobile parts in large volumes at lower costs. Growing automotive production in India is driving the demand for automotive stamping to manufacture vehicle body parts. India has emerged as a manufacturing hub for small cars and is among the top five largest car manufacturers globally. The automotive production in India increased at a CAGR of 7.1% during FY17-FY22. Further, various government initiatives such as ‘Make in India’ and product localization requirements are attracting global OEMs to invest in local production, which is expected to propel vehicle production over the forecast period.

The global India Automotive Stamping Market is estimated to be valued at US$ 5363.64 Mn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

Growing Automotive Production
As mentioned above, growing automotive production in India is driving the demand for automotive stamping parts. The government’s stringent regulations around localization are encouraging global automakers to set up local production plants in India. This is expected to boost vehicle manufacturing and subsequently fuel the demand for stamping over the forecast period.

Localization Requirements
Government policies mandating certain levels of localization are encouraging stamping manufacturers to set up production bases in India. This allows automakers to meet localization norms and offer cost-competitive products. domestic stamping production is also supporting ‘Make in India’ initiative of the government by reduce import dependence.

Segment Analysis
India Automotive Stamping Market Size
is dominated by passenger vehicles segment which holds around 70% share of the total market. Within passenger vehicles, hatchbacks dominate the segment owing to increasing demand for affordable mobility solutions in India. Hatchbacks offer compact size and higher fuel efficiency which makes them suitable for traffic conditions in Indian cities.

PEST Analysis
Political: The government of India has announced new incentives under automotive production linked incentive scheme to promote local manufacturing of automotive components including automotive stampings. This is expected to attract additional investments in domestic automotive stamping industry.
Economic: Strong economic growth in the country is leading to rising disposable incomes. This is increasing the affordability of vehicle ownership. The growth in automotive production is directly supporting the rise in demand for automotive stampings.
Social: Growing preference for personal mobility over public transportation due to safety concerns post COVID-19 pandemic is positively impacting the automotive sales. Young population is increasingly adopting hatchback and SUV segments which use substantial stampings.
Technological: Stamping manufacturers are investing in advanced hydraulic andServo presses to produce complex optimized automotive stampings. This is helping OEMs reduce vehicle weight and comply with stringent safety and crash test standards.

Key Takeaways
The India automotive stamping market is expected to witness high growth supported by rising automotive production in the country. The global India Automotive Stamping Market is estimated to be valued at US$ 5363.64 Mn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2031.

Regional analysis: Southern region of India dominates the automotive stamping market led by states like Tamil Nadu and Telangana where major automotive and auto component manufacturing clusters are located.

Key players: Key players operating in the India automotive stamping market are Avery Dennison, Magna, Gestamp, Diehl, and Acroux. Avery Dennison is one of the largest players owing to its established stamping facilities and presence across multiple automotive segments in India.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it