subject: Key Growth Drivers Of The Automotive Casting Industry [print this page] Automotive castings Automotive castings
The automotive casting industry includes auto components manufactured by the process of metal casting. Metal casting is a manufacturing process in which metal is melted and poured into moulds where it solidifies into complex-shaped components. ( http://www.bharatbook.com/detail.asp?id=149799&rt=Automotive-castings.html )
Growth in the domestic automobile industry will be a key determinant of growth in the automotive casting industry. Tractors and commercial vehicles segments drive ferrous castings while non-ferrous castings depend on the two-wheeler industry. Market size and structure
Market size of the automotive castings industry (including exports) after considering the unorganised segment is estimated to be Rs 86 billion in 2008-09. The industry has grown at a robust pace of 18 per cent from 2003-04 to 2008-09.
The ferrous castings industry, within the automotive casting industry, is estimated to be around Rs 23 billion while size of the non-ferrous (aluminium) industry is around Rs 63 billion in 2008-09.
In tonnage terms, the ferrous casting industry is estimated to be around 370 thousand tonnes and aluminium casting is around 230 thousand tonnes in 2008-09. Although ferrous castings is greater in tonnage terms, unit realisation of the aluminium industry is much higher leading to a higher value size.
Over a period of 4 years, 2004-05 to 2008-09, share of exports has grown from 8-10 per cent to the current scenario where they account for 12-15 per cent of the industry. Imports are negligible in this segment and are consumed mainly in the replacement market.
Demand for automotive castings primarily comes from three segments - original equipment manufacturer (OEM), exports and the replacement segment. Exports of castings are mainly supplied to OEMs in overseas markets.
The industry has two kinds of entities manufacturing castings - captive foundries run by OEMs and independent foundries set up by component suppliers.
Suppliers are segmented into three tiers - tier one comprises large organised players supplying largely to the OEM segment and exports; tier two consists of small organised players who supply to the OEMs as well as to tier one companies. Small unorganised players who supply to tier two players and to the local replacement markets make up tier three.
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