Indian turbocharger industry to grow at CAGR of 14% during FY2016-FY2020e – ICRA Report


  • ICRA expects market potential for the domestic turbocharger industry market to grow to Rs 2,600-2,800 crore by FY2020, registering CAGR of 14% during FY16-FY20. While volume growth could be modest at around 8-9% CAGR, value growth will be healthy as higher value added solution (VGTs, twin spool turbo) as well as new products to meet stricter regulatory requirements drive higher content-per-vehicle.
  • Turbocharged petrol vehicles gaining prominence in India – Power output of various turbocharged petrol models vis-à-vis non-turbocharged variants (Tabublar analysis on page 3)
  • CAFE norms as well as stricter emission norms will further propel usage of turbochargers
  • Lower excise duty on small cars with small engine (<1.2L petrol or <1.5L diesel) is pushing turbocharger penetration, as OEMs can deliver higher power with a small engine
  • Supplier profile: Honeywell and Borgwarner are global leader in turbocharger systems
  • Honeywell and Borgwarner are the leading suppliers of turbochargers in the domestic as well as global
  • Turbocharger manufacturers are increasingly localizing their raw material requirements, supporting growth of Tier II ancillaries
  • Turbocharger suppliers for various automotive segments

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