Auto Parts

The Automobile industry in India is the seventh largest in the world with an annual production of over 2.6 million units in 2009. In 2009, India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads. Following India's growing openness, the arrival of new and existing models, easy availability of finance at relatively low rate of interest and price discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the Indian automobile industry. In the near future, the government of Gujarat will allocate large land areas for the development of Special Economic Zone which will be parted in three different areas and will include industries such as Software, Auto-Mobiles, etc. Rajkot is one of the main hubs for auto and engineering industries and hoped that the proposed SEZ would further boost the growth of auto and engineering industry. As per recent market reviews, Rajkot is becoming Asia's biggest Auto-Mobile Zone.

Rajkot auto components industry, which has about 70 per cent share in the Indian auto parts industry. Rajkot has about 50 Original Equipment Manufacturer (OEM) suppliers in auto components and the total turnover of these units is about Rs 800-1000 crore per year. An overall turnover of the industry is about Rs 4000-4500 crore every year. Rajkot, which has about 1000 small and medium units, is witnessing an increase in their production capacity to cater to the huge demand this year (2010). What with almost 70 percent share in the Indian auto components industry, Rajkot in Gujarat is said to attract major investments, up to the tune of Rs 1000 crore in the next two years, says a Business Standard report.

As per industry sources, the orders have increased by 35-40 percent this year (2010) and to fulfill the requirement, companies are investing in capacity expansions. “The recent boost in the auto components industry will add more than 15-20 percent in the growth in the industry and in overall Rajkot engineering industry”, said Bharat Davda of TERI.