Top sector for foreign direct investment in India

Automotive Components Manufacturers Association

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The automotive parts industry in India makes original parts for General Motors, Mercedes, Iveco and Daewoo amongst others.

Automotive component industry

  • India's automotive components industry is the most lucrative sector for foreign direct investments. Hundreds of collaborations foreign direct investments have been made in recent years and there is tremendous potential for more. Markets are huge and growing both within India and overseas.

  • It presently incorporates a total investment of more than US$1.2 billion which is expected to rise to US$2.7 billion by the end of the year 2000.

  • The market is worth US$2.3 billion at present and this is expected to touch US$9.4 billion in 2001.

  • Automotive components manufactured in India are of top quality and used as original components for vehicles made by such top international companies as General Motors, Mercedes, IVECO and Daweoo among others.

  • Automotive products made in India have a huge overseas markets in addition to the dometsic market.

  • The number of vehicles manufactured in India is expected to rise from 3 million annually to 5 million by 2000. This will increase domestic demand for automotive components.

  • Japanese and British component manufacturers are already operating joint-ventures in India. American companies which have, or are planning to, set up plants in India include Delphi (an automotive components division of General Motors USA), Delco Electronics, Textron and Magna International of Canada.