Auto component industry 2030 view
Auto components industry in India is poised for an amazing growth thanks to technology upgradation in ICE and EVs resulting in newer offerings. Our continuous focus on manufacturing competitiveness thro best practices will lead to a long-term average growth of 8 to 10%. The chart below shows how the industry output is moving from $74 Bn in 2024 to $145 Bn in 2030 based on current projections. Exports are expected to grow 3-fold with a good domestic cost arbitrage and FTAs fuelling the same. A few facts are also given as bullet points.
As of 2024 data
Domestic: $53 Bn
Export: $21 Bn
Current Total: $74 Bn
Projections for 2030
Expected Domestic: $85 Bn
Expected Export: $60 Bn
Expected Total: $145 Bn
- Aftermarket accounts for ~10% of current total sales
- Currently contributes to ~2.5 % of GDP
- Employs directly 1.5 Mn people
- Average long term (upto 2030) growth expected is 8 – 10%
- Cost arbitrage expected to be between 10-20% compared to Europe / LatAm
- UK FTA and expected EU FTA will reduce tariffs at receiving end making our exports more competitive
- GST rationalisation may peg max rate at 18% (full details awaited)
- Additional investments to the tune of $7 Bn expected by 2028 mainly towards E motors, automatic transmissions etc (related to EV)
