Auto Component Industry To Touch The $300 Billion Mark Soon

 The automobile sector has seen remarkable growth in recent years, and the same has been the case with the auto-component industry. It was reported in the year 2019 that the auto industry expanded by 10.6%. This industry was able to reach the mark of US$56.2 billion in FY19.

With the growing demand for automobiles, the requirements of auto-component have been increasing significantly. Reports suggest that today auto-component industry accounts for 2.3% of India’s GDP and it has a total of 1.5 million employees. In India, it is also a favorite destination for many foreign investors.

Importance of this industry

Today, the high precision auto component is in constant demand all over the world, and most of the companies resist using usual quality or cheap parts. This increases the demand for good auto components that are used in everyday vehicles like cars, two-wheelers, and big vehicles like trucks and buses.

Government has also been planning many strategies to ensure that this industry gets the resources it needs and it is also expected that this industry would be able to produce 300 billion dollars in profit by the year 2026. It is also likely that this industry would grow at a rate of CAGR 15%.

Precision Components

It is said that there are excellent benefits of the precision auto component are they are listed below:

• With the use of these components in automobiles, one can ensure the manufacturing of excellent vehicles.
• These components will enhance the performance of any automobile.
• They automatically ensure the long life of any automobile out there and thus return on investment is excellent.

 

Most of this equipment with higher precision already come with pre-engineered features and this allows the easier assembly of these components when required. So most of the automobile vendors today want to buy the high precision auto component as these components can help them make their product manufacturing much faster.

Also, if you worry about the wastage that occurs during the manufacturing process, then it would be a delight to know that these components minimize this wastage. While the manufacturing of these components, it is ensured that there shouldn’t be any residual material when these components are to be used in the final product.

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