How strong is the propensity among Indian Auto Ancillaries to transition from Tier-1 to Tier-0.5 suppliers?
- Ankur Jain
- Feb 4
- 2 min read
1. Increased share of suppliers in working with OEMs from design stage : MForesight: Alliance for Manufacturing Foresight estimated global percentage to be <50% in late 1980s to ~70% in 2011. Since 2011, no quant estimate is there but
- My understanding of space suggests that this number has risen significantly globally
- In Indian context, Tier-1 has largely been predominant till 2018's, so the pecentage is bound to be much less than global standards
2. Since 2018 following firms have taken steps towards tier-0.5 supplier:
- Uno Minda ATUL ABROL of Spark Minda calls tier-0.5 indispensable
3. Latest additions to the list since 2024..
- Watching Belrise Industries (formerly Badve Engineering) closely on the developments
4. What it actually means to be Tier-0.5 supplier?
- Move beyond "discrete parts supplying" to "supplying integrated systems"
- TATA AutoComp Systems Ltd is taking responsibility for complete systems (e.g., chassis, underbody, EV battery packs, e‑mobility modules) and co‑developing with OEMs from concept stage
- Sona Comstar is developing integrated EV drive-line solutions (more details covered here : https://lnkd.in/g7C4PTAb
- Lumax World just established its China office in late 2025 to get ahead of the world and move towards Tier-0.5 / Tier-0.2 if that might come to existence sooner:)
5. It is interesting that these developments are also visible in my latest recent 2x2 assessment highlighting the state of digital transformation at Indian Auto Ancillaries
- [X-axis] Strength is digital design is needed to move towards 0.5
- [X-axis] Strong MES solutions are needed to move beyond supplying discrete parts and integrate with precision and pace
- [Y-axis] Cost-control and granular cost accounting is key to compete among tier-0.5's
Ankur Jain Website for details : https://lnkd.in/gnnFtq7S
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