Export Potential for 2W Market for Indian Tier 1 Supplier

Abstract

Background: Automobiles industry is becoming highly competitive with increasing globalization and ever-increasing need for cost-effective, high-quality components/products in Automobiles Industry.  Objectives: The Objectives of the study include finding the right customers and evaluating them for one of the business units, the Electrical Business Unit (EBU) of Varroc Engineering Ltd in overseas market. Also, to estimate the Export potential of Product Portfolio. The study aims to identify large foreign OEMs, and estimate potential demand for EBU product categories like Starter Motor, lighting systems, instrument clusters, switches, and other electrical components. Additionally, it focuses on creating a systematic and implementable market entry approach that would ensure Varroc with specific OEM customers(s).

Methods: The research methodology involves a two-step approach to collect and analyze data for this report. Key data was compiled for the analysis visit wise regarding spending on procurement of new devices for automotive embedded system.

Key results: The analysis provides input for selection of high potential OEMs and geographies at the entry stage. For instance, European regions are attractive regions with relatively larger dependence on ICE engines and relatively fragmented supplier base. In conclusion, the project has identified that there are significant export growth opportunities for Varroc’s EBU business and developed a structured roadmap to gain a share within overseas OEM accounts. Conclusion: The recommendations have been purposely developed in order to be practical, scalable and synergistic with the long-term global expansion strategy of the company.