India’s auto component industry eyes $100 Billion export goal

New Delhi

India's auto component industry is on track to expand its global footprint, aiming for $100 billion in exports as global manufacturers rethink supply chains. The sector has already seen exports rise to $21.2 billion in FY24, shifting from a $2.5 billion trade deficit in FY19 to a $300 million surplus today.

A report by ACMA and Boston Consulting Group (BCG) highlights how India can boost exports by $40-60 billion by strengthening its position in 11 key product families, particularly targeting markets in the US and Europe. Additionally, a $15-20 billion export opportunity exists in EV components like battery management systems, telematics units, and ABS.

"We have not only achieved a trade surplus, but in auto-specific exports, this balance has grown to $0.5-1.5 billion," said ACMA President Shradha Suri Marwah, emphasizing the industry's long-term growth plans.

Encouraging global OEMs to set up manufacturing hubs in India could further integrate Indian suppliers into global supply chains, according to BCG's Vikram Janakiraman.

With cost advantages over European and Chinese suppliers, India's component industry is well-positioned for rapid expansion. ACMA’s Director General, Vinnie Mehta, urged domestic firms to increase exports by 5-10 times to solidify India’s place in the global auto market.