India's Auto Component Metal Forming Market Set to Reach USD 90-95 Bn by FY30

India's automotive metal forming market covering casting, forging, stamping and machining is projected to grow at approximately 12% CAGR to reach USD 90-95 bn by FY30, according to a report released by investment bank Avendus Capital on the Indian Auto Component Industry.

The sector crossed USD 80 bn in FY25 and transitioned from net importer to net exporter, with exports reaching approximately USD 23 bn. The shift reflects an expansion in manufacturing complexity, quality standards and global integration.

The report identifies a structural change in global automotive supply chains, with value concentrating toward process specialists rather than diversified product suppliers. These specialists draw competitive advantage from metallurgical expertise, precision tooling and institutional manufacturing knowledge, which together create barriers to entry.

Global OEMs and Tier-1 suppliers are diversifying sourcing bases in response to geopolitical uncertainties and cost pressures, and India is increasingly a preferred destination, supported by cost competitiveness and an established supplier ecosystem.

Core metal-forming processes: casting, forging and machining — remain relevant across both ICE and EV platforms, with growing requirements for precision, lightweighting and complexity. The report also highlights India's position as a residual supplier in ICE components as global manufacturers redirect capital toward electrification. Components including crankshafts, gears and axles, along with the aftermarket servicing a global ICE parc of over 1.5 bn vehicles, represent an additional demand base.

"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. 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," said Koushik Bhattacharyya, Managing Director and Head, Industrials Investment Banking, Avendus Capital.

Deal activity in the sector is increasing, with participation from global private equity firms and strategic acquirers. Investors are prioritising businesses with process expertise, export orientation and scalable manufacturing platforms.