India Set to Transform Global Auto Component Landscape Amid Trade Disruption
India's auto component industry, both in ICE and EV sectors, stands to gain from global trade disruptions. Senior McKinsey partner Shivanshu Gupta sees significant revenue potential and underscores India's vital role as global trade flows shift and electrification accelerates, offering opportunities despite challenges like rare earth shortages.
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Shivanshu Gupta, a senior partner at the prestigious global management consulting firm McKinsey, highlighted the significant opportunities for India's automotive component industry amid global trade disruptions. Speaking at an Automotive Component Manufacturers Association of India event, Gupta noted both ICE and EV sectors in the nation stand to benefit.
Gupta emphasized that India's auto component manufacturers will continue to be relevant players. While the domestic market remains largely focused on internal combustion engine components, globally, many countries will still depend on Indian suppliers. He projected incremental revenues of USD 20 to 30 billion over the coming years, underscoring India's growing role in the sector.
With electrification waves sweeping through the automotive world, Gupta asserted that India is strategically positioned to contribute significantly, especially as EV adoption in the US and EU could soar to 30% to 60% by 2030. He acknowledged challenges like the rare earth shortage but assured that solutions, including alternative materials and recycling, are being explored to overcome these obstacles.
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