April 17, 2024
India Automotive Stamping Market

India Automotive Stamping Market is set to drive growth through increasing vehicle production in the country

The India automotive stamping market has been witnessing significant growth over the past few years. Automotive stamping refers to manufacturing process that forms various automotive body and interior components using stamping dies and hydraulic or mechanical presses. Some of the commonly stamped auto parts include doors, hoods, fenders, lift gates and trunk lids. The growing demand for passenger and commercial vehicles coupled with strong focus of OEMs in local manufacturing has propelled the growth of automotive stamping industry in India. The government’s ambitious plan to increase vehicle production to over 30 million units annually by 2026 will require large scale investment in domestic stamping capacity.

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 Market Size 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.

The growing demand for passenger vehicles especially in mid-size SUV and compact SUV segments has increased the need for auto stamping in India. As per SIAM, passenger vehicle sales grew by over 26% in FY2022 driven by rising disposable incomes. Several global automakers have announced fresh investments towards local production which will require significant stamping capacities.

Major auto stamping companies are focusing on expanding globally by establishing facilities near major automobile manufacturing clusters. Several Indian stamping suppliers have commissioned plants in other Asian and European markets to cater to clients’ international requirements and leverage opportunities in export markets.

Market key trends
Electric vehicle adoption is one of the major trends driving growth of automotive stamping industry. EVs have more number of stamped parts compared to ICE vehicles which is increasing the per vehicle stamping content. Companies are developing new forming techniques and lightweight materials to enable mass production of critical EV components. Investment in robotics, automation and digitization are other ongoing trends maximizing production efficiency of stamping lines.

Porter’s Analysis
Threat of new entrants: Low set up costs and availability of second hand machinery has reduced entry barriers for new entrants in the automotive stamping market.

Bargaining power of buyers: Large automotive OEMs hold significant bargaining power over stampers due to their scale and purchasing power.

Bargaining power of suppliers: A few large global players control the supply of raw materials like steel and aluminum sheets used for stamping. This gives them strong bargaining power.

Threat of new substitutes: Stamped auto body parts have limited threat from substitutes due to lack of viable alternatives that can match capabilities and cost.

Competitive rivalry: Intense competition exists among numerous local and international stampers trying to win contracts from automotive majors.

Geographical Regions
North America accounts for the largest share of the global automotive stamping market in terms of value, led by the US. This is due to high vehicle production levels catering to domestic as well as export demand. Asia Pacific follows North America and is growing at a brisk pace owing to exponentially rising vehicle manufacturing hubbed in China, India, Japan, and South Korea. The presence of global OEMs and Tier I suppliers have made these countries major automotive stamping hubs.

India is projected to register the fastest growth in the automotive stamping market over the forecast period. This is attributed to growing indigenous production to meet sizable domestic demand alongside the ‘Make in India’ initiative making it an attractive manufacturing destination for foreign automakers. Moreover, lower labor costs give Indian stampers a competitive edge in the global industry.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it