Spanish automotive supplier Gestamp anticipates India will become one of its five largest markets worldwide within five to six years, driven by expanded manufacturing, R&D and technology investment.

Speaking to ETAuto, Gestamp executive chairman Francisco J Riberas said: “Moving to the idea of 2030, it will not be a surprise for me if we are able to double our turnover in India in the next five years.”

He added: “If we do things right in India, it has to be one of the biggest markets for us in five-six years.”

Gestamp’s revenue in India was about €240m ($275.4m) last year, against global sales of around €11bn.

The company’s turnover in India has risen by about 80% over the past five years, and it expects this to double again over the next five years, subject to winning new customer contracts.

Gestamp is investing Rs5.24bn ($54.6m) in a new plant in Gujarat.

The project was initially planned around one hot-stamping line but was enlarged to include a second phase after customer orders were received.

The facility will contain two hot-stamping lines, along with laser and assembly operations, and will focus on structural parts for vehicle manufacturers in the region, including larger components such as door rings.

Riberas said the plant would operate with a high level of automation to support quality, efficiency and cost.

The Gujarat plant adds to Gestamp’s existing operations in India, which include a chassis parts factory in Pune and a joint venture with Aditya Auto Products in Maharashtra producing hinges, checks and latches.

The company said domestic steel sourcing for vehicle production in India is expected to grow as new grades and supply come on stream.

Riberas also said Gestamp is looking at partnerships and acquisitions as supplier consolidation remains a possibility.

In electrification, Gestamp has secured several EV contracts in India, including for battery box supply, while maintaining what it described as a powertrain-neutral strategy centred on lightweighting, safety and structural engineering.

Riberas said pure EVs are expected to account for around 10% of India’s vehicle output over the next five years.

Gestamp also expects demand to increase for large steel parts, or “megastampings”, as manufacturers look to reduce component numbers and simplify assembly.

The company said interest in gigacasting has cooled recently because of high investment costs and aluminium pricing.