McKinsey’s Shivanshu Gupta: Indian auto component industry to benefit from global trade shifts
(source : ANI) ( Photo Credit : ani)
Global Trade Shifts Boost Indian Auto Components: McKinsey Expert
In a positive turn for India’s auto industry, Shivanshu Gupta, a Senior Partner at global consulting giant McKinsey, shared his optimism about how disruptions in worldwide trade could supercharge Indian auto component manufacturers. Speaking on Friday at the Automotive Component Manufacturers Association of India (ACMA) annual event in New Delhi, Gupta highlighted opportunities for both traditional Internal Combustion Engine (ICE) parts and the booming Electric Vehicle (EV) sector.
"Trade flow disruptions around the world are creating big chances for us in India," Gupta told on the sidelines of the event. He stressed that Indian manufacturers will stay competitive and relevant, especially as the country remains a major player in ICE components. "We’ll still be heavily focused on ICE in India, but globally, many companies will turn to us for these parts. India can grab a huge share of that market," he explained.
Gupta predicts a massive revenue boost ahead. He estimates that Indian auto component makers could see an extra $20-30 billion in income over the next four to five years, thanks to these global shifts. This comes as companies worldwide look for reliable suppliers amid supply chain chaos.
Shifting to EVs, Gupta sees India stepping up big time. With a global wave of electrification hitting the mobility world, he believes India can lead on the component front. "India has a key role to play here, both at home and abroad," he said.
Looking at numbers, Gupta pointed out that EV adoption in the US and EU could hit 30-60% for passenger cars by 2030. In India, the EV market is exploding at a 35% compound annual growth rate (CAGR), driven by two-wheelers, three-wheelers, and small commercial vehicles. "There’s huge potential on the ICE side as the go-to efficient supplier for the world, and on the EV side too," he added.
As global trade patterns change, Gupta is confident Indian auto components will emerge as major winners. He acknowledged challenges like the shortage of rare earth materials, crucial for EV batteries and motors. "It’s a real short-term hurdle," he admitted. But solutions are in the works: temporary deals with China, exploring alternatives like electrically excited synchronous motors instead of permanent magnet ones, government and industry initiatives, and even recycling efforts. "I think we’ll see fixes coming through soon," Gupta concluded.
This upbeat outlook could signal exciting growth for India’s auto component sector, positioning it as a global powerhouse in both ICE and EV technologies.
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