India’s Metal Forming Market to Reach USD 90–95 Bn by FY30: Report
The report highlights a structural shift in global automotive supply chains, where value is increasingly concentrating in process-led manufacturing segments rather than diversified product suppliers.
vecteezy
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
India’s auto component metal forming market is projected to grow significantly over the next few years, driven by changing global supply chains and rising domestic demand. The segment, which includes casting, forging, stamping and machining, is expected to emerge as a key value driver within the broader automotive ecosystem.
According to a report by Avendus Capital, titled its latest study on the Indian Auto Component Industry, the country’s automotive metal forming market is likely to expand at a compound annual growth rate of around 12% to reach approximately USD 90–95 billion by FY30.
The report highlights a structural shift in global automotive supply chains, where value is increasingly concentrating in process-led manufacturing segments rather than diversified product suppliers. These process specialists rely on deep metallurgical expertise, precision tooling and long-standing operational capabilities, creating significant entry barriers.
Koushik Bhattacharyya, Managing Director and Head of Industrials Investment Banking at Avendus Capital, said, “The Indian auto component sector is moving beyond a scale-driven growth phase into a capability-led consolidation cycle. We are seeing a clear shift in value toward process specialists, where deep manufacturing expertise and operational precision are becoming the key differentiators.”
He added, “As global supply chains evolve, India is uniquely positioned to capture this opportunity, particularly in core metal-forming segments. We expect this to translate into sustained deal activity, as investors look to build scaled, capability-led platforms in the sector.”
The broader auto component industry in India has already crossed USD 80 billion in size in FY25, with exports reaching about USD 23 billion. The sector has also transitioned from being a net importer to a net exporter, reflecting improvements in manufacturing complexity, quality standards and global integration.
A major factor behind this growth is the ongoing diversification of sourcing by global original equipment manufacturers and tier-I suppliers amid geopolitical uncertainties and cost pressures. India is increasingly being viewed as a preferred manufacturing hub due to its cost advantages, skilled workforce and established supplier base.
The report also notes that core metal-forming processes remain critical across both internal combustion engine and electric vehicle platforms. It further points to India’s emerging advantage in internal combustion engine components, as global suppliers scale back investments in this segment, opening up opportunities in drivetrain parts and the aftermarket.
India’s auto component metal forming market is projected to grow significantly over the next few years, driven by changing global supply chains and rising domestic demand. The segment, which includes casting, forging, stamping and machining, is expected to emerge as a key value driver within the broader automotive ecosystem.
According to a report by Avendus Capital, titled its latest study on the Indian Auto Component Industry, the country’s automotive metal forming market is likely to expand at a compound annual growth rate of around 12% to reach approximately USD 90–95 billion by FY30.
The report highlights a structural shift in global automotive supply chains, where value is increasingly concentrating in process-led manufacturing segments rather than diversified product suppliers. These process specialists rely on deep metallurgical expertise, precision tooling and long-standing operational capabilities, creating significant entry barriers.
