India to become major auto part manufacturer amid Russia-Ukraine war
Equipment

India to become major auto part manufacturer amid Russia-Ukraine war

The Russia-Ukraine war has made auto part makers in India shift their business models to supply more parts from within the country.

Major auto parts makers reminiscent of Lumax, Sona Comstar, Minda Industries, and Sandhar Technologies have been pushed to look at different de-risking choices due to rising input prices, giving the nation a chance to become the leading manufacturing hub of auto parts.

India gives a distinctive alternative to auto unique gear producers or original equipment manufacturers (OEMs) because it has a long-time manufacturing base.

Auto part producers have already begun processing extra parts across India, holding huge inventories, creating buffer shares and getting into long-term contracts.

Previously, the lead cycle for such contracts was shorter. The ongoing war disruption has stretched that to about nine months for some parts. It has become untenable and resulted in auto part gamers sourcing extra from throughout the nation.

Managing Director of Lumax Industries, Deepak Jain, told the media that because of the multiple disruptions and volatility, the expectations and ordering cycle keep changing.

He said that component makers are de-risking the provision chain by deep localisation.

The production-linked incentive (PLI) schemes for ACC battery and auto parts additionally give India a chance to become the leading manufacturing hub.

Jain said that with newer disruptive technologies like electric, hybrid, and green hydrogen coming up, it compels the company to manage the future and the present.

The Russia-Ukraine war has led to the price of raw supplies, like metals. It has threatened the survival of micro, small and medium enterprises (MSMEs) in addition to tier 2 and tier 3 suppliers.

Image Source

Also read: Indian auto component industry likely to grow 8-10% in FY23

The Russia-Ukraine war has made auto part makers in India shift their business models to supply more parts from within the country. Major auto parts makers reminiscent of Lumax, Sona Comstar, Minda Industries, and Sandhar Technologies have been pushed to look at different de-risking choices due to rising input prices, giving the nation a chance to become the leading manufacturing hub of auto parts. India gives a distinctive alternative to auto unique gear producers or original equipment manufacturers (OEMs) because it has a long-time manufacturing base. Auto part producers have already begun processing extra parts across India, holding huge inventories, creating buffer shares and getting into long-term contracts. Previously, the lead cycle for such contracts was shorter. The ongoing war disruption has stretched that to about nine months for some parts. It has become untenable and resulted in auto part gamers sourcing extra from throughout the nation. Managing Director of Lumax Industries, Deepak Jain, told the media that because of the multiple disruptions and volatility, the expectations and ordering cycle keep changing. He said that component makers are de-risking the provision chain by deep localisation. The production-linked incentive (PLI) schemes for ACC battery and auto parts additionally give India a chance to become the leading manufacturing hub. Jain said that with newer disruptive technologies like electric, hybrid, and green hydrogen coming up, it compels the company to manage the future and the present. The Russia-Ukraine war has led to the price of raw supplies, like metals. It has threatened the survival of micro, small and medium enterprises (MSMEs) in addition to tier 2 and tier 3 suppliers. Image Source Also read: Indian auto component industry likely to grow 8-10% in FY23

Next Story
Infrastructure Transport

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

Next Story
Resources

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Next Story
Real Estate

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?