India Piston and Piston Rings Market Future Outlook to 2022: Ken Research

How India Piston and Piston Rings Market is Positioned?

The automotive industry in India is growing at a fast pace owing to collective increase in the number of two wheelers, three wheelers, passenger and commercial vehicles segment and used cars segment. Economic reforms of 1991 and permission of up to 100% FDI in the automobile sector has been some of the major factors responsible for sustained growth of the automotive industry in India.

The non-automotive segment for instance, generators market leading to small scale power generation is expected to witness growth owing to expansion in infrastructure, establishment of new industries and changing business environment in the country. India piston and piston rings market generated revenue of INR ~ million in FY’2017 exhibiting a five year CAGR of ~% from FY’2012 to FY’2017.

India Piston and Piston Rings Market Segmentation

By Piston and Piston Rings

Pistons in the Indian market dominate the sales with INR ~ million capturing a market share of ~ % in FY’2017. The piston rings market on the other hand takes up ~% of the market with revenue of INR~ million.

By OEM and Aftermarket

Original Equipment Manufacturers (OEMs) dominate the purchase volumes of piston and piston rings with a revenue share worth ~% in FY’2017. The aftermarket parts in India are usually less expensive in comparison to OEM parts. The after-market is still a secondary revenue option as it helps acquire sales not just from OEM’s but also from retailers.

By Type of Sales

The demand type is segmented into domestic and export sales. The domestic sales have accounted for a staggering ~% revenue share of the overall market. The emergence of large automotive clusters in the country has provided the market with stable growth. In comparison the export of piston and piston rings has contributed only a mere ~% of the market revenues. The export sales are still an un-penetrated sector with lucrative growth opportunities.

By Automotive & Non-Automotive Sector

The automotive segment majorly comprises of passenger and commercial vehicles, two wheelers, three wheelers and other LCV, HCV and MUVs collectively generating revenue share worth ~% in FY’2017

By Market Structure

Market structure can be broadly classified into organized and unorganized sector. Primarily, the organized sector caters to the needs of OEMs, dominating the India piston and piston rings market with a revenue share worth ~% in FY’2017. On the other hand, the unorganized sector has firmly established itself in the aftermarket of piston and piston rings by capturing revenue share worth ~% in FY’2017 with increasing replacement demand of piston and piston rings in the sector.

By Type of Piston Rings

Based on type, piston rings are classified into compression, oil and other piston rings. Compression rings have captured majority of the market share with ~% in revenue generated from sale of piston and piston rings industry in FY’2017. In contrast, oil rings was ranked second in market with revenue share worth ~% majorly due to high demand for flexible oil rings, with the ability to handle sufficient amount of unit pressure in FY’2017. At last, other piston rings which incorporate scraper/wiper rings were able to capture minimum revenue share of ~% in FY’2017.

Whereas, the non automotive segment comprises of power generating engines such as electric generators and others, gaining the remaining share of ~% in FY’2017.

By Type of Vehicles

Based on type of vehicles, piston and piston rings market can be classified into two wheelers, passenger and commercial vehicles, LCV and HCV and three wheelers. The two wheeler vehicles segment dominated with revenue share worth ~% in FY’2017 owning to growth of high performance bikes as well as scooters. Passenger and commercial vehicles segment witnessed a ~% revenue share in FY’2017 majorly due to increasing demand for MUV’s and hatchbacks in India. The remaining share of ~% was collectively captured by LCV, HCV and three wheelers, where in the three wheelers had a minimal share of ~%.

By Type of Coating

The piston and piston rings market can be classified into thermal barrier coating, dry film lubricant coating and oil shedding coating. Thermal barrier coating segment dominated the India piston and piston rings market by capturing revenue share of ~% in FY’2017. Dry film lubricant coating captured second place with a revenue share of ~% and lastly oil shedding coating which captured a share of ~ %.

Trade Scenario of India Piston and Piston Rings Market

The total export value of piston and piston rings in India was evaluated at INR ~ million in FY’2011 which increased to INR ~ million in FY’2016.

Piston and piston rings were majorly exported for both spark ignition and internal combustion engines to U.S, Europe, U.K, and China.

In India, spark ignition engine pistons and piston rings, make up ~% and ~% of total exports and compression engine piston, piston assembly and piston rings accounted for remaining ~%, ~% and ~% of total exports for the year ending FY’2016. The technologies used in India to produce light weight pistons are gaining importance in foreign countries which is leading to growing number of exports to foreign countries.

India Piston and piston rings Market Major Players

Shriram Pistons dominated the India piston and piston rings market by maintaining revenue share worth ~% in both FY’2016 and FY’2017 majorly due to rise in sales of its high end pistons and piston rings, accompanied by its comprehensive distribution network, targeting various segments such as passenger cars (PC, MUV and MPV), light commercial vehicles, two wheelers and three wheelers in the country.

Federal Mogul Goetze India followed in second place with revenue share of ~% in India piston and piston rings market in FY’2017.

Sam Pistons made its presence felt by capturing revenue worth INR ~ million. In FY’2017, it served the ~% of the market in terms of revenue generation as a result of focusing on the motorcycle segment but also expanding to the four wheeler segment in India, thus making them one of the leading two wheeler automotive component suppliers in India.

Trends and Developments of India Piston and Piston Rings Market

The major trend to be witnessed in India piston and piston rings market is the emergence of light weight aluminum pistons, over the last few years OEM’s prefer using lightweight aluminum pistons compared to traditional iron pistons in India.

Indian piston and piston ring manufacturers are transitioning in terms of quality by allocating a greater portion of their budget towards research and development with the prospect of achieving efficient, environmental and cost friendly alternatives.

The automotive industry in India especially the market for two-wheeler’s has experienced a significant boost in demand especially for high end performance bikes. The high-performance bikes use a dual-cylinder engine as opposed to the other bike segments which only use a single cylinder engine thus increasing the production for pistons and piston rings in the domestic market.

Issues and Challenges of India Piston and piston rings Market

The India piston and piston rings market is posed with a major threat from the rapid rise of the environment friendly Electric and Hybrid vehicles that do not require any pistons in order to function which can lead to substantial reduction in demand for piston and piston rings. In FY’2016, the electric vehicle sales saw a growth of ~% to ~ units up by ~ units from the previous year.

The trend in recent times towards downsizing of engines and designs for pistons has led to more intensive operating conditions in modern engines. This has created a highly competitive environment for piston and piston ring manufacturers to operate.

India is faced with a daunting task of improving their poor infrastructure network. Indian manufacturers for piston and piston rings suffer from both demand side and supply side Infrastructure bottlenecks.

Future Outlook

Future outlook and projections were forecasted on the basis of revenues and type of vehicles that include two wheelers, three wheelers, passenger and commercial vehicles, MUV’s, LCV and HCV as well as the used cars segment. Over the forecast period, India piston and piston rings market will prepare itself to meet the future demand expected from the substantial investment proposed in key segments such as automotives and industrial sector. Initiatives such as the introduction of GST bill would be beneficial to the automotive components industry more specifically the piston and piston rings market as manufacturers would have to pay a lower amount of tax. The GST bill will also help in reducing the margins between the organized and unorganized piston and piston rings manufacturers.

The two wheeler segment in India is expected to dominate more than half of the India piston and piston rings market with revenue share worth ~% by FY’2022. The passenger car segment follows with the expectation to attain revenue share of ~% by FY’2022. LCV and HCV segment is expected to capture the second smallest share of ~% in India piston and piston rings market by FY’2022.

Key Factors Considered in the Report

Future Piston Rings Market

Exporters Piston Rings India

Auto Components Manufacturers India

Automotive Piston Market Size

Piston rings Manufacturers India

The Indian Automotive Piston Aftermarket

Piston Ring Suppliers & Manufacturers in India

Companies Cited in the Report

List of Companies Companies Covered in the Report

Shriram Piston and Rings Ltd

Menon Pistons Ltd