Original Equipment manufacturing (OEM) are considering India as an serious Investment option for auto parts outsourcing. After global economic slowdown all American and European Auto Giants are under pressure to be price competitive with their rival Asian car makers.

One good examples of growing auto spares parts industry in India is SETCO Automotive. They are manufacturers of clutches of passenger cars and heavy commercial vehicles. SETCO has doubles its capacity in last two to cater to indigenous demands and of exports. Demand for commercial and passengers vehicles are almost stagnant in US, Europe and Japan. So auto manufacturers form these countries are eying the Indian market for future investments & growth.

Indian auto industry is investing heavily in developing facilities for design and manufacturing of auto spares parts. This investment will attract global auto giants to start outsourcing quality spares at competitive price from India. It is estimated that in next 5/6 years the spares parts industry for automobile will be a $14 billion investment

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