Car sales boom in India has had a catalytic effect on the auto component business in the country. If you have a look at the new releases in the last two days, the auto component business has attracted investments and expertise from various Indian and foreign players.

Popular two-wheeler manufacturer of India, Hero Motors, and part of the Hero Group has signed a pact with Kiriu Industries to manufacture automotive parts - brakes and knuckles, for small cars. The facility is to be located at Manesar in Haryana.

Birla Auto and Engineering Group will invest Rs 90 Crore in the auto component manufacturing segment. As part of its expansion plans, the company is likely to raise the amount from share market and get investments from foreign players. The company plans to raise the investment within 15 months and has targeted revenue of Rs 400 Crore per annum from the current Rs 200 Crore.

Birla Auto comprises of Birla Precision Technologies, Birla Peruchinni, Indian Tool Manufacturers (ITM), and Dagger Forst, which are likely to merge with the parent company Yash Birla Group. All the four companies are into manufacturing precision machined tooling, castings, gear cutting tools, and other related products.

Bosch and Tata Motors have awarded big contracts to Yash Birla Group recently. Meanwhile, Porwal Auto Components announced that it is expanding into the car components business. The company currently supplies SG and CI castings for heavy commercial vehicles and some of its customers are Eicher Motors, Avtech, Kinetic Motors, Force Motors, and Man Trucks.

Looks like it is not only the car manufacturers that are entranced by the Indian market, but their parts manufacturers as well.