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Gaining a foothold in the Indian auto component market has been challenging for most international suppliers. The innovative, capable and well-funded international suppliers find it challenging to meet the price of frugally structured, nimble locals who feel threatened by the quality of their international challengers. In a scenario where orders are won mostly on price, the ‘fit enough to pass’ local suppliers manage to nibble away flesh well before the stronger contenders can strike.  In this scenario of Darwin’s anecdotal ‘punctuated equilibrium’ only the most responsive to change will thrive, provided they hold out long enough and adapt quickly. The winners are already breaking the barriers by learning local rules, and by aligning their star to those of ascendant OEMs.

As time passes by, the incumbent locals are slowly loosing their edge and their lack of in-house technical capabilities is pushing them to open up to alliances. That is where the opportunity lies. The best gene-pool will dominate the market and the ability to envision the future and act decisively will be key.

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