Automobile sector and U.S. market buoyancy spruce up Latin America metal die casting market

Latin America has witnessed a considerable growth in the metallurgy and material die casting market over the past couple of years. According to a recently published market research report, highly matured die casting market in North America and spiking automobile sector in the region were the major driving factors for the increasing die casting parts market in the country.

Brazil and Argentina state and local governments have lured foreign investors by providing auto manufacturing industry with a variety of incentives such as free land, tax incentives, government-funded education programs and promises of infrastructural investment. This made the OEMs to expand their manufacturing footprint beyond the traditional manufacturing zones in Latin America and now, are found to source individual parts, including die casting parts from the suppliers at cheaper prices. Protectionist policies in Brazil and Argentina are giving the local suppliers further competitive advantage in the region over suppliers located abroad.

The Latin America market for automobile parts die-casting is registered revenue $0.74 billion in 2014 and is expected to touch $1.10 billion by 2020 with an estimated CAGR of 6.85% over the forecasted period.

Rockman Industries, Castwel Auto parts Pvt. Ltd., Endurance Group, Dynacast, Sandhar technologies limited, Gibbs die casting group and Die casting solution GmbH are some of the key players in the market.

The market is segmented based on the production process type, by raw material type, by application type and by country type.

In a nutshell, automobile makers are now focusing on collaborating with the part die casting manufacturers in order to produce fuel-efficient and lightweight automobiles at an effective price.