Increasing Market Penetration of Automobiles in India, ‘Make in India’ initiative and Increasing Investment in Automobile Industry will boost India Roller Chain Market: Ken Research
· India auto chain market value will escalate in the future owing to increasing automobile sales in the country. Innovation, technological advancement and low market penetration has resulted in increasing investment in India automobile industry.
· India auto chain market is majorly driven by high demand by OEMs and aftermarket. Indian Government introduced ‘Make in India’ initiative in 2014 which has brought ease for foreign players to manufacture auto chains and automobiles in India and sell at lower cost, avoiding excise duties and taxes.
· Auto chain companies’ focus on increasing their exports and enhancing production levels & production capacities would aid in sustaining growth of the market.
Indian market has huge potential for automobiles as there are only 20 passenger vehicles, 5 commercial vehicles and 108 two wheelers per 1,000 persons. Automobile companies are enhancing their product reach with a vision to capture untapped markets. Increasing market penetration of automobiles in India will positively affect the sales of automobiles and with rise in the sales and production of automobiles, the demand for auto chains in the market will rise exponentially. It has been anticipated that India will be the third largest manufacturing hub of automobiles by 2020 majorly owing to various Government initiatives, ease in Government policies, huge untapped markets, increasing manufacturing facilities of automobile manufacturers, increasing disposable income and enhancing production capacities. As the demand of auto chains is directly linked with the sales of automobiles, rise in revenues of auto chains is expected in future.
The Modi Government introduced ‘Make in India’ initiative on September 25th, 2014. The primary goal of this initiative is to make India a global manufacturing hub, by encouraging both multinational as well as domestic companies to manufacture their products within the country. Make in India has introduced multiple new initiatives, promoting foreign direct investment, implementing intellectual property rights and developing the manufacturing sector. This initiative has aided the domestic as well as foreign manufacturing companies through its easy reforms and regulations to setup businesses in India. Many automobile manufacturers have entered the market since 2014 owing to ease of business.
Increasing two wheeler sales, rising demand of four wheeler and commercial vehicles, increasing proportion of used cars and rising exports value are some other key factors that may have positive impact on the market creating additional and replacement demand in the future, according to the Analyst at Ken Research.
Ken Research in its latest study, India Drive and Timing Chain Market Outlook to 2022, suggests that demand for auto chains in the market will continue to dominate in India owing to rising household income, easy interest rates, availability of cheaper automobile models and increasing awareness on using good quality chains. The export value will increase in future on account of cheaper products and increasing companies’ dealership network.
India drive and timing chain market is estimated to register a positive CAGR growth during FY’2017 — FY’2022. Increase in automobile sales in future and ‘Make in India’ are expected to be key drivers for spiked demand in India auto chain market. The report provides information on components of auto chains, market size by revenue, market segments by type of chains, by vehicle, by OEMs and aftermarket, by sectors and by market structure, value chain process for auto chains, trends and developments in the market, key issues and challenges in the market, norms and regulations for auto chains, trade scenarios in India, investment model for setting up auto chain manufacturing plant, porter’s five force analysis, future outlook and covering competitive landscape of major companies including L.G. Balakrishnan & Bros Limited, Tube Investment of India and Rockman Industries.
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Ankur Gupta, Head Marketing & Communications