Global auto component suppliers are shifting their focus to Asia, particularly India, due to economic uncertainty and trade tariffs in the US and Europe. Leading companies like Samvardhana Motherson, Sona Comstar, Bridgestone, and Tenneco are increasing their presence in the Asian market, which is seen as a critical hub for growth. The US auto market is facing uncertainty due to the Trump administration’s reciprocal tariffs, while the European market is experiencing softening demand.
As a result, companies are looking to India and other Asian countries for growth opportunities. Tenneco, for example, has filed for a ₹3,000 crore initial public offering (IPO) of its Indian operations. While Asian markets cannot fully replace the scale of Western markets, they offer a vital buffer. Experts caution that developed global markets are still critical for export growth, but companies are looking to diversify into new areas, such as the aftermarket in India and other Asian countries.
Recent earnings reports have highlighted the divergence in performance between developed and emerging markets. Samvardhana Motherson International reported a 1.7% growth in the global light vehicle industry, but a 4% decline in developed markets was offset by strong performance in India and China. Sona Comstar has implemented a “look east” policy, aiming to expand its footprint in Asia to counter slowdowns in North America and Europe.
Companies are also investing heavily in India, with Bridgestone earmarking $85 million to expand its manufacturing capacity in Pune and Indore. Sona Comstar has entered the Chinese electric vehicle market through a joint venture, and is seeking opportunities in other fast-growing Asian markets. The geographic shift is part of a broader push to diversify into new business areas, such as aerospace and robotics, as companies seek new avenues for growth beyond their traditional markets.
Overall, the shift in focus to Asia, particularly India, is a strategic move by global auto component suppliers to capitalize on growth opportunities in emerging markets. While developed markets are still critical, companies are looking to diversify and expand their presence in Asia to mitigate the impact of economic uncertainty and trade tariffs in the US and Europe.