Your eyes and hands in India · Est. 2019 · Replies within one working day

India's machine tool and auto parts industries at a glance

India's machine tool and auto parts industries serve home and export markets, with strong clusters in Gujarat. Here is how they are organised and how a buyer should read them.

· 3 min read · Creston & Co

The India machine tool industry ranges from large makers of CNC machines to small workshops that build lathes, drills and presses, and the auto parts industry supplies both vehicle makers and the aftermarket. Both are large and varied, and both export, so a buyer's job is to find the right tier for the product.

We give no output or export totals here. Figures for India machine tool output and India auto parts exports are published by industry associations and government bodies each year, so use the latest release and note its date.

How is the machine tool industry organised?

At the top are established makers of CNC lathes and machining centres with their own design and controls integration. Below them are makers of conventional machines and of special-purpose machines, often built to order. Rajkot and Ahmedabad have many small and medium makers; see machine tools from Rajkot.

Most Indian machines use imported CNC controllers, which helps with service in other countries because the controller is a familiar brand. Check this when you compare machines. Our guide to CNC controllers explains the common options.

How is the auto parts industry organised?

Auto parts makers work in tiers. Tier-one suppliers sell directly to vehicle makers and work to strict quality systems. Tier-two and tier-three suppliers make components and materials for them. A separate aftermarket supplies replacement parts to workshops and dealers.

Gujarat has a growing automotive cluster; read about auto components in Gujarat. For a buyer, the main split is between original-equipment quality and aftermarket quality, which differ in testing and in paperwork. See OEM vs aftermarket parts.

What should a buyer look at?

Because capability varies so much, judge each supplier directly. Useful checks include:

  • Whether the plant has its own machining, assembly and inspection, or relies on subcontractors for the key steps.
  • Whether quality certificates are current and cover the product, and whether records of tests and lots are kept.
  • How the supplier handles drawings, changes and first-article approval.
  • Spare parts support for machines, and part-number control for auto components.
  • Export experience in your market, including labelling and packing needs.

What are the typical risks?

In machine tools, the main risk is a gap between a catalogue specification and what the machine achieves. Ask for geometric accuracy and trial cuts, as explained in witnessing a machine trial. In auto parts, the risk is inconsistency between lots, and counterfeit or mislabelled parts in the aftermarket.

Both industries depend on steel, castings and electronics, so supply disruptions in those inputs reach the finished product. Build slack into lead times and keep a second supplier for critical items.

Ask suppliers directly what share of their output goes to export and which markets they serve. A plant used to meeting a European or American buyer's drawings, packing and labelling rules is easier to work with than one that has only sold at home.

Next step

We can shortlist machine tool and auto parts makers, audit them and check samples and lots before shipment. To begin, book a free sourcing review.

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