India’s Auto Parts Industry Could Reach $115 Billion by 2021

India's auto components industry will triple to $115 billion over the next seven years, predicts Edelweiss Financial Services Ltd.

The Mumbai-based financial services company figures the supply base will expand by a compound annual growth rate of 17% during that time to become Asia's next big supply hub.

The firm's analysis, Auto Components: The Future Mega Trends Mega Factors, also forecasts that exports will generate 26% of the country's supply industry revenue by 2021.

The report bases its findings on input from India's 30 largest auto component manufacturers. Edelweiss notes that some of those companies already derive half their revenue from sales outside India compared with 10% in 2002.

The report says another coming trend will be consolidation within the supply base. It points out that Tata Motors Ltd. has said it aims to reduce its supply base by one-third in four years.