July 2017 India Drive and Timing Chain Market Outlook to 2022
TRADE SCENARIO OF INDIA AUTO CHAIN MARKET India auto chain export revenues witnessed unstable growth during the period FY ’ 2011 – FY ’ 2016 , rising from INR ~ billion during FY ’ 2011 to INR ~ billion during FY ’ 2017 at a CAGR ~% during FY ’ 2011 - FY ’ 2016 . Indian companies export auto chains to almost every part of the world but majorly to the developed countries namely- USA , Germany , France , Italy , Japan and others . In terms of revenue , USA dominates the export market of auto chains owing to automobile industry being the largest manufacturing sector in the USA .
India auto chain import market witnessed revenues rising from INR ~ billion during FY ’ 2011 to INR ~ billion during FY ’ 2016 at a CAGR ~% during FY ’ 2011 – FY ’ 2016 . India is one of the leading manufacturers of automobiles in the world and to sustain market competition in both domestic and global markets ; major players in the industry have been undertaking all possible cost cutting measures . China and Thailand accounted for ~% of the overall import revenue in India auto chain industry , majorly owing to achieving economies of scales , cheaper manufacturing costs and price competitiveness . Countries like Germany , Japan and Italy have advance technologies and the ability to achieve higher economies of scale , which enables them to cater to the needs of the foreign market .
TRENDS AND DEVELOPMENTS IN INDIA AUTO CHAIN MARKET Motorcycle sales in Indian market is expected to grow positively owing to high economic growth , rise in disposable income and increased rural spending . As the demand for motorbikes in India experiences a substantial growth India auto chain market will augment accordingly . Indian companies also have strategic alliance with aftermarket suppliers for sales of auto chains under the OEM brand name . In recent years , the market size of the auto chains in aftermarket is escalating due to rapid growth in motorcycle sales . As market penetration is increasing in India , demand for auto chains has been increasing exponentially .
ISSUES AND CHALLENGES High cost of logistics has huge impact on the supply chain because of India ’ s primary use of road transportation . Logistics cost as a percentage of sales are about ~% higher in India in comparison to other Asian markets . China has been a strong competitor to India in both the domestic as well as the international market . Lately , there has been a growing sense of insecurity among Indian manufacturers due to increasing penetration of Chinese goods into India . Rising demand for scooters and increasing market penetration may negatively affect India auto chain market in future .
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