According to a study conducted by Assocham, sourcing in the auto component industry will generate $700 billions to low cost countries by 2015. Additionally, Auto component sourcing from low cost countries may increase from the present level of $65 billion to about $375 billion in the same year.

India, who already supplies components to leading automobile companies in the world, could be a major beneficiary of increased sourcing, as it could scale up its component outsourcing business. At present, India is on its way as the global hub for international auto majors for exporting Completely Built Units (CBUs), as well as for outsourcing components.

India is the manufacturing hub for particular car models of Hyundai, Ford, Skoda, Suzuki and Mahindra. The country is also the component destination for Toyota, GM, and Daimler Chrysler. In addition, India is also the 125 cc motorcycle center for Mitsubishi and Yamaha.