Auto-Component Sector Holds ₹98,000 Cr in Inventory

India’s auto-component industry has approximately ₹98,000 crore locked in inventory, according to a study by Vector Consulting Group. Of this, ₹29,000–39,000 crore could potentially be released through improved inventory management practices. Around ₹4,000–5,600 crore of the release opportunity lies within the MSME ecosystem, which accounts for roughly 80% of component manufacturers. The study notes that consumption-based replenishment models can potentially reduce inventory levels by 30–40%. Furthermore, a 30% productivity improvement across auto-component MSMEs could support additional annual turnover in the range of ₹74,000–88,000 crore. The findings highlight significant scope for efficiency gains, working capital optimisation and higher output in the sector. **Top stocks in the auto-components industry:** Samvardhana Motherson, Bosch Ltd, and