Current Export Landscape
As of the fiscal year 2024, India’s auto component exports reached approximately $21.2 billion.
The regional distribution of these exports is as follows:
| Region | Export Value (USD Billion) | Percentage of Total Exports |
|---|---|---|
| Europe | 6.9 | 32.5% |
| North America | 6.8 | 32.1% |
| Asia | 4.6 | 21.7% |
| Rest of World | 2.9 | 13.7% |
| Total | 21.2 | 100% |
Source:
Notably, North America stands as a significant market, accounting for 32.1% of India’s total auto component exports. However, India’s share in North America’s total auto component import market is relatively modest, representing approximately 4% (or $6.8 billion) of the region’s $170 billion annual import requirement.
Ambitious Export Targets
The Automotive Component Manufacturers Association of India (ACMA), in collaboration with the Boston Consulting Group (BCG), has outlined a strategic vision to elevate India’s auto component exports to $100 billion over the next 7-8 years.
This ambitious target represents a nearly fivefold increase from current export levels.
Strategies for Expansion
To achieve this substantial growth, the industry is focusing on several key strategies:
- Enhancing Traditional Component Exports: By concentrating on 11 specific product families, including engines, gears, rubber brakes, axles, suspension systems, wiring harnesses, and motors, India aims to bolster its presence in established markets, particularly in the United States and Europe. This focus could contribute an additional $40-60 billion in exports.
- Capitalizing on Emerging EV and Electronic Components: With the global shift towards electric vehicles (EVs), there is a growing demand for components such as battery management systems, telematics units, and instrument clusters. By localizing production and strengthening capabilities in these areas, India could add $15-20 billion in exports.
- Positioning as a Global Automotive Hub: The industry aims to position India as a global hub for both traditional and advanced automotive technologies. This involves enhancing testing and tooling capabilities, fostering innovation, and forming strategic partnerships with international original equipment manufacturers (OEMs) to integrate domestic manufacturers into global supply networks.
Industry Outlook
The ACMA-BCG report reflects optimism about India’s potential to capture a larger share of the global auto component market. The positive trade balance achieved in recent years underscores the industry’s growing competitiveness. With a clear roadmap and strategic initiatives in place, India’s auto component industry is well-positioned to achieve its ambitious export targets in the coming years.
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