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 for auto components 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 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.
The 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 a CAGR of 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 longer
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 for the easier assembly of these components when required. So most
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.