Indian Auto Parts Makers Expand into Electronics Manufacturing: Jefferies
Leading Indian auto-component manufacturers, Motherson Group and Bharat Forge, are leveraging India’s growing electronics sector to expand their operations, according to a report by global investment firm Jefferies. As India rapidly scales up electronics manufacturing, these companies are utilizing their expertise in technology collaborations and manufacturing to tap into new opportunities.
Jefferies’ report, Electronics: A New Growth Opportunity for Auto-component Makers, highlights how the intersection of electronics and auto manufacturing is becoming more prominent. Global suppliers such as Bosch, Alps Alpine, and Sumitomo Electric are already engaged in both industries. The Indian government’s push for domestic electronics production is further fueling this transition. India’s electronics manufacturing grew at a 15% CAGR between FY16-24, reaching $115 billion, with a goal to expand to $500 billion by FY31. While India excels in chip design and electronics assembly, its value addition remains at 18-20%, which the government aims to increase to 35% by 2030.
Motherson Group has partnered with Hong Kong-based BIEL Crystal, investing ₹2,600 crore in glass manufacturing for consumer electronics. Its first facility began operations recently, with two more plants expected by 2026-27. Meanwhile, Bharat Forge is collaborating with AMD and Taiwan’s Compal Electronics to manufacture servers in India using its SMT facility.
With India’s auto industry already a global leader, these moves position auto-component manufacturers to play a significant role in the country’s electronics ecosystem.
Source: EMS Now
