Mumbai: India's automotive metal forming market is expected to grow at a compound annual growth rate (CAGR) of 12 per cent to reach USD 90-95-billion by FY30, driven by cost competitiveness, engineering talent and supplier ecosystem, a report said.
The industry has crossed a critical threshold in recent years, surpassing USD 80 billion in size in FY25 and transitioning from being a net importer to become a net exporter, according a report by investment bank Avendus Capital.
This reflects not just scale expansion, but a structural upgrade in manufacturing complexity, quality standards, and global integration, the report said.
It further said that the core metal forming processes remain indispensable across both internal combustion engine (ICE)-powered as well as electric vehicle platforms, with increasing requirements for precision, light-weighting, and complexity.
India's automotive metal forming market is expected to grow at around 12 per cent CAGR to reach USD 90-95-billion by FY30, positioning metal forming as one of the largest and most resilient value pools within the broader auto component ecosystem, supported by both domestic demand and accelerating export momentum, Avedus Capital said.
"The Indian auto component sector is moving beyond a scale-driven growth phase into a capability-led consolidation cycle. We are seeing a clear shift in value toward process specialists, where deep manufacturing expertise and operational precision are becoming the key differentiators," said Koushik Bhattacharyya, Managing Director and Head of Industrials Investment Banking at Avendus Capital.
A key driver of this transformation is the ongoing reconfiguration of global automotive supply chains, as original equipment makers and Tier-1 suppliers diversify sourcing bases amid geopolitical uncertainties and cost pressures.
India is increasingly emerging as a preferred manufacturing destination, supported by its cost competitiveness, engineering talent, and established supplier ecosystem, the report stated.
The report underscores a deeper structural transition - value in the global auto component supply chain is increasingly concentrating on process specialists, rather than diversified product suppliers.
These process specialists benefit from deep metallurgical expertise, precision tooling capabilities, and decades of operating know-how, creating high entry barriers that are difficult to replicate, it stated.
"As global supply chains evolve, India is uniquely positioned to capture this opportunity, particularly in core metal-forming segments. We expect this to translate into sustained deal activity, as investors look to build scaled, capability-led platforms in the sector," said Bhattacharyya.
The report also underscores India's emerging "last man standing" advantage in ICE components.
As global suppliers reallocate capital toward electrification and reduce investments in ICE-related manufacturing, India is well-positioned to capture a widening supply gap in critical drivetrain components, including crankshafts, gears, and axles, it said.
From a deal activity perspective, Avendus Capital said that the sector is witnessing increasing interest from investors, particularly in process-led businesses.
Recent transactions indicate increasing participation from both global private equity firms and strategic acquirers, signalling a broader shift towards capability-led consolidation, with investors prioritising businesses characterised with deep process expertise, export orientation, and scalable manufacturing platforms, the report said.
Source Name : Economic Times