Power and transmission

In automobiles, a powertrain generates power and transmits it to the wheels. It can be broadly classified into four
components — (i) engine and engine parts, (ii) transmission, (iii) driveshaft, and (iv) rear axle. The engine burns
the fuel to produce mechanical power. It comprises several critical components, including cylinder block, cylinder
head, and crankshaft, pistons, camshaft, and engine valves.

Cylinder block

Cylinder block is the supporting structure of the engine on which all engine parts are mounted. It houses the
cylinder, which gives engine its power. The cylinder block for commercial vehicles (CVs), off-road vehicles,
sports/multi-utility vehicles (SUVs / MPVs), and tractors uses cast iron. In fact, cast iron accounts for 55-60% of
the manufacturing cost, which weighs on the revenue of companies. The market size of the cylinder block for
CVs, construction vehicles, MPV/SUVs, and tractors was Rs 27.9 billion in fiscal 2020, which is expected to
reach ~Rs 40.6 billion by fiscal 2024.

Market share of cylinder block by vehicle segment (fiscal 2020: Rs 27.9 billion)

    

= Commercial vehicles =Tractors =SUV_ = Off road vehicles
Source: CRISIL Research
Cylinder head

Cylinder head covers the cylinder and helps the head gasket seal the cylinders in order to build enough
compression for the engine operation. Similar to a cylinder block, cylinder heads are also manufactured by the
process of casting using ferro alloys.

The current market size of cylinder head for CVs, construction vehicles, SUVs, and tractors is Rs 14 billion, which
is expected to reach ~Rs 18.2 billion by fiscal 2024.

Market share of cylinder head by vehicle segment (fiscal 2020: Rs 14 billion)

 

= Commercial vehicles = Tractors =SUV_ = Off road vehicles
Source: CRISIL Research
Transmission

Transmission is commonly known as the gearbox, which transmits power to the wheels through the drive shaft
and rear axle. Auto-component companies are engaged in casting, forging and machining of engine parts,
transmission parts housing, drive shaft, rear axle housing, etc.

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