In fiscal 2021, the Covid19 pandemic put the brakes on automotive segment demand. CRISIL Research expects
a further drop of 14-16% on year in automotive demand (domestic+ exports) in fiscal 2021. The casting market,
in turn, is also expected to shrink by 18-20% in fiscal 2021. Automotive industry is expected to pick up pace from
fiscal 2022, supporting demand for the aluminium casting industry as well.

Aluminium die casting market volumes

 

0.49 Oot 3.5% 0.45-0.55
MH
0.44
| L 0.3-0.4
FY18 FY19 FY20 FY21E FY 24P

Source: CRISIL Research

+ Automotive industry demand is estimated to clock 2-4% CAGR during fiscal 2020 to 2024 with the expected
improvement in the economy, improvement in consumer sentiment, vehicle launches & support from
financiers. The subdued growth pace expectation is due to the sharp drop expected in fiscal 2021. From fiscal
2021-2024, industry is expected to register a healthy growth of 8-10% CAGR.

+ Inline with automotive demand, the aluminium castings market (in tonnage terms) is projected to grow 3-5%
to reach 0.45-0.55 million MT by fiscal 2024.

+ In value terms, the market is expected to touch Rs 220-225 billion, clocking 6-8% CAGR.

Aluminium die casting market in value terms

 

iggy, 225
| | f 135-140
FY18 FY19 FY20-FY21E FY 24P

Source: CRISIL Research
Key players

The aluminium die casting industry has a large number of players. Major organised players include Rockman
Industries, Sunbeam Auto Private, Alicon Castalloy, Sundaram Clayton,Endurance Technologies and Craftsman
Automation Limited.

Growth drivers

+ Growth in automobile sales;

+ Passenger vehicles and two-wheelers account for 95% offtake of non-ferrous/ aluminium castings;

+ India as an export hub;

* Global original equipment manufacturers (OEMs) are promoting localization in India due to its cost
effectiveness;

+ Movements like "Make in India" augur well for the domestic castings industry;

+ Lighter vehicles consume less fuel. Lesser weight helps minimize brake and tyre wear and tear;

+ Automakers are trying to reduce vehicular weight by using non-ferrous metals like aluminium to cut carbon
emissions;

+ Cost competitiveness;

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