Metal stamping is a manufacturing procedure used to convert flat metal into desired shapes. Automotive stamping is a type of metal stamping, in which high volume sheet metal parts are processed for automotive OEMs are aftersales market. The automotive stamping industry produces a wide range of products manufactured from sheet metal including bracket, plate holder, roofs, fenders, valves, exhaust systems, brake shoes, and fuel delivery systems. Different types of procedures are used in automotive stampings such as cold stamping, hot stamping, progressive die stamping, transfer stamping, and tandem stamping. The stamping market India is classified as Automotive OEMs with in-house stamping capabilities, Stamped component supplier, and stamping service provider.
The India automotive stamping market was accounted for US$ 4,519.6 Mn in 2018 and is expected to grow at a CAGR of 10.8% during the forecasted period (2019-2027)
- Increasing production and sales of vehicles is expected to drive growth of the India automotive stamping market during the forecast period.
There has been significant growth in four-wheeler production in India and marginal growth in two & three-wheeler production. This is owing to growing demand from domestic as well as international consumers. This, in turn, has increased the demand for automotive stamping. Furthermore, growth of automotive sales in India is due to growing disposal income, increasing consumer confidence, credit availability, and affordable interest rates. For instance, according to the Organisation Internationale des Constructeurs d’Automobiles” (OICA), in 2015, motor vehicle production in India reached to 4.1 million units, which is up by 7.3% from 2014, which pegged at 3.8 million units. Furthermore, according to the Automotive Component Manufacturers Association of India (ACMA), in 2015, three-wheeler production in India was 19.8 million units.
- High growth in export of automotive components is expected to propel the India automotive stamping market over the forecast period
In 2008 and 2009, the automotive components industry showed substantial growth, even during the economic crisis. The automotive components export account for around 30% of the total revenue. As India is a rampantly emerging automotive components hub for engine and transmission parts, it is expected to increase the demand for automotive stamping in the near future. Moreover, this demand will compel OEMs and tier 1 manufacturers to manage their production capacity by establishing a new process for stamping automotive components. This, in turn, is expected to fuel the market growth over the forecast period.
- Pressure on suppliers for cost reduction is expected to restrain growth the India automotive stamping market over the forecast period
In the recent past, automakers have focused on weight reduction and performance improvements. However, in order to achieve these two features, automakers need to use advanced materials that are more expensive than conventional materials. Moreover, manufacturers are focused on cost reduction, which becomes a challenging job considering present competition in the market. This, in turn, has limited the pricing flexibility in the automotive stamping market, thereby restraining growth of the India automotive stamping market in the near future.
- Restricted use of new technologies, owing to complexity and high cost are expected to hinder the India automotive stamping market growth during the forecast period
The Indian automotive industry is comprised of a large pool of Tier II and Tier III companies that are involved in production of sheet metal components and assemblies. These companies are unwilling to invest in new products and technologies due to higher costs. Furthermore, complex operation of newly installed technologies is another factor hamper established players in the market from adopting the technology. This, in turn, is expected to hinder the India automotive stamping market growth in the near future.
- Significant investment in advanced technologies are expected to pose lucrative growth opportunities for market players
Investing in the latest and advanced technologies can prove to be beneficial for key market players. Since the automotive industry in India is growing at a rapid pace, both automotive production and sales have increased significantly in the recent past. Moreover, increasing investment has led to continuous incorporation of advanced technologies, which is expected to pose significant growth opportunities for market players in the near future.
- Enhancement in stamping technology is expected to pose excellent business opportunities for market players in the near future
Advent of latest technology has improved the existing stamping processes and technologies. These advanced technologies can provide better performance to manufacturers, thereby enhance the overall product quality. For instance, precision stamping uses high tonnage presses and stamping dies to forge sheets of metal into complete or semi-complete parts. It includes complex stamping applications with stamping, folding, drawing, or piercing of a product in a single series operations. This, in turn, is expected to offer conducive growth opportunities for market players during the forecast period.
Source: Coherent Market Insights
In India automotive stamping market, by vehicle type segment, passenger vehicle sub segment dominated the India automotive stamping market in 2018, accounting for 38.4% share in terms of value, followed by commercial vehicle and three wheelers, respectively.
- Growing application of hot stamping process is a major trend in the market
Hot stamping has been extensively used in the automotive industry as it facilitates production of lightweight automotive components with higher strength. More importantly, it is cost-efficient to produce complex parts without pressing issues. Hot stamping is widely used in manufacturing of safety-critical parts and components such as A and B-pillar reinforcements and other body components. Moreover, this process has been extensively incorporated in various economies including China, Europe, and North America. In February 2017, Gestamp Automobile India Private Limited invested US$ 40 million to establish a hot stamping plant in Pune to tailor increasing demand for safer and lightweight vehicles in the country.
- Growing partnerships among OEMs and stamped components suppliers is another major trend in the market
Growing collaborations and partnerships between OEMs and stamped component suppliers, in order to enhance product development and manufacturing are expected to be the major trend in the India automotive stamping market over the forecast period. OEMs and stamped components suppliers have been forming collaborations and partnerships, which has smoothened the operations and fulfilled the demand for products. Furthermore, OEMs are focused on reducing their vendor base, in order to minimize account management. For instance, in February 2017, Gestamp Automobile India Private Limited set up a new plant in Pune, in order to provide increasing demand for stamped component requirement from Ford, Tata Motors, and Fiat Chrysler Automotive (FCA).
Value Chain Analysis
Key players operating in the India automotive stamping market are Automotive Stampings and Assemblies Ltd., JBM Group, Klt Automotive And Tubular Products Limited, Autocomp Corporation Panse Pvt. Ltd., Omax Auto Ltd., Mahindra CIE Automotive Limited, Sona Koyo Steering Systems Limited, Harsha Engineers Limited, Tata Autocomp Systems Limited, Cosma International (India) Private Limited, Yeshshree Press Comps Private Limited, Gestamp Automobile India Private Limited, Surin Automotive Private Limited, Skh Metals Limited, and Caparo India.
- Key players in the market are focused on mergers and acquisitions, in order to gain competitive edge in the market. For instance, in February 2019, JBM Group acquired a majority stake in Linde-Wiemann GmbH KG, a German supplier and manufacturer of complex structural components and assemblies in automotive industry.
- Major companies in the market are involved in agreement and partnerships, in order to enhance their market presence. For instance, in June 2019, Tata Autocomp Systems Limited, an Indian auto component maker, entered into an agreement with Fortaco Group for the manufacturing of safety cabins for off-highway vehicles in India.