April 18, 2024
India Automotive Stamping Market

India Automotive Stamping Market Set for Substantial Growth due to Growing Adoption of Advanced Manufacturing Technologies

The India automotive stamping market is predominantly driven by the need for cost-effective mass production of complex automotive components. Automotive stamping involves forming sheet metal components through mechanical press operations that aid manufacturers in reducing parts count and simplifying assembly. The growing focus on weight reduction, materials engineering, and structural integrity of vehicle bodies has augmented the scope of stamping. Moreover, stamping helps achieve consistent dimensional accuracy, tighter tolerance requirements, and higher quality standards demanded by OEMs.

The Global India automotive stamping market is estimated to be valued at US$ 5363.64 Mn in 2024 and is expected to exhibit a CAGR of 4.0% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the India automotive stamping are Avery Dennison Corporation, CCL Industries Inc., Multi-Color Corporation, UPM Raflatac, 3M Company, Brady Corporation, RR Donnelley & Sons Company, Mondi Group, WS Packaging Group, Inc., Constantia Flexibles Group, Fuji Seal International, Inc., Consolidated Label Co., Resource Label Group, LLC, Inland Label & Marketing Services, LLC, Fort Dearborn Company. The India automotive stamping market provides several opportunities, including rising vehicle production in India, development of lightweight materials, and emphasis on sustainability. Technological advancements like hot stamping, 3D printing, AI enabled stamping are further fueling the market growth.

Market Drivers

The key drivers for India Automotive Stamping Market Size include growing vehicle demand in India, changing regulations regarding fuel efficiency and emission standards, and increasing local production of vehicles by international OEMs in India. As per industry estimates, the passenger vehicle sales in India are projected to grow at a CAGR of over 9% during 2022-2026. This rising demand is encouraging vehicle manufacturers to ramp up local production and sourcing of auto components like stamped parts. Additionally, the stringent BS-VI emission norms effective from 2020 are compelling automakers to make vehicles lighter and more fuel efficient using technologies like hot stamping.

Challenges in the India Automotive stamping Market

The India automotive stamping market is facing various challenges such as rising raw material prices, limited skilled workforce, expensive labour costs, and unstable governmental regulations. With surging steel and aluminum prices due to global supply chain issues, automotive component manufacturers are facing increased production costs. Also, finding and retaining skilled professionals for advanced stamping technologies is difficult due to low availability of training institutes. High wages and employee benefits in India compared to other Asian countries make operations less profitable. Frequent changes in tax and environmental policies create an uncertain business environment for auto part suppliers.

SWOT Analysis
Strength: Low cost of production due to availability of affordable labour.
Weakness: Outdated manufacturing units and lack of investments in advanced equipment.
Opportunity: Growing demand for electric vehicles and component localization requirements by OEMs.
Threats: Intense competition from Asian automotive hubs like China and Thailand offering lower costs.

Geographical Regions
In terms of value, the western region accounts for the largest share in the India automotive stamping market primarily due to the presence of major automakers such as Tata Motors, Mahindra & Mahindra in the region. States like Maharashtra and Gujarat contribute significantly to the country’s automotive manufacturing sector. The southern region, led by Karnataka and Tamil Nadu, is also a prominent automobile manufacturing base and sees high concentration of stamping component suppliers and Tier 1 & 2 vendors serving leading OEMs.

The northern region, comprising states like Haryana, UP and Delhi NCR, has emerged as the fastest growing regional market for automotive stamping in India on account of OEMs and their ancillary partners setting up new production clusters to cater to northern Indian car markets as well as gain access to road and rail connectivity for transporting finished vehicles. Proactive government automotive policies in these states are encouraging large investments in auto component localisation.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it