Automotive metal forming market to reach USD 95 billion by FY30

India's automotive metal forming market — the business of casting, forging and machining the thousands of metal parts that go into every car, truck and two-wheeler — is likely to more than double to $90-95 billion by 2030 from $40 billion now, an assessment by Avendus Capital showed.

The investment bank's latest report says this segment will expand at 12% annually, driven by India absorbing global supply chains shifting away from China. The sector has already crossed $80 billion in overall auto components in FY25, turning India into a net exporter.Also read: Hyundai Motor records 8.7% annual hike in Q4 sales with 2,08,275 units

Anchored initially by large automakers — Maruti on the four-wheeler side, erstwhile Hero Honda and Bajaj Auto on two-wheelers — Indian vendors spent decades deepening their manufacturing expertise. Today, they have reached cost and scale parity with China, says Koushik Bhattacharyya, Managing Director and Head of Industrials Investment Banking at Avendus Capital,


"Auto components is one of the most cost-conscious, ruthless sectors you can have," Bhattacharyya said. "Indian companies are faring pretty well."

Deal activity in the sector is running at its highest in a decade. The last three years have seen more M&A in auto components than the preceding ten, with private equity firms actively building scaled platforms and strategic buyers returning to the table. Bhattacharyya expects the momentum to hold for at least the next two to three years.

What has emerged is a new class of what Bhattacharyya calls process specialists — companies that go very deep into a single manufacturing process, whether casting, forging or precision machining, and supply across vehicle segments. Their strength is not the breadth of what they make, but how well and how cheaply they make it.

A widely held concern is that the shift to electric vehicles will hollow out this industry. Bhattacharyya pushes back firmly. Metal-formed parts remain essential in EVs — structural components, gear systems and chassis parts don't disappear with the combustion engine. In fact, EVs introduce a new demand driver: lightweighting. Aluminium and composite parts require more sophisticated forming and machining, often commanding higher value than their ICE equivalents. Meanwhile, larger vehicle segments — trucks, tractors, off-road vehicles — face minimal electrification over the next five years, keeping volumes robust.