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India's auto comp industry to triple to $200 billion by 2030
Industry News- Sep 10,24
By 2030, sales to original equipment manufacturers (OEMs) could grow to $89 billion, while exports may soar to $100 billion, representing a CAGR of 30%.
India's automotive components industry, currently valued at $74 billion, is poised for rapid expansion, with projections indicating it could reach $200 billion by 2030. This near-tripling of its size is driven by rising demand for premium vehicles, advances in alternative propulsion technologies, and India's growing role in global supply chains, according to a joint report by the Automotive Component Manufacturers Association of India (ACMA) and McKinsey.
Since 2014, the industry has maintained a strong growth rate of 7-8% CAGR. However, it is expected to accelerate further in the latter half of this decade, driven by domestic vehicle premiumisation, technological advancements in alternative powertrains like electric vehicles (EVs) and CNG, and expanding opportunities in export markets. By 2030, sales to original equipment manufacturers (OEMs) could grow to $89 billion, while exports may soar to $100 billion, representing a CAGR of 30%.
The report also highlights a robust opportunity in the domestic aftermarket, which could reach $16 billion, thanks to contributions from passenger vehicles (PV), commercial vehicles (CV), and two-wheelers. Despite challenges in segments like two-wheelers, India's components industry remains resilient, contributing 25% to the country's manufacturing GDP.
To capitalise on these opportunities, the report recommends focusing on advanced battery technologies and EV components, developing domestic lithium resources, and fostering partnerships for technology transfer. Additionally, increased investment in research and development (R&D) and localised production of electronic components could further boost the industry's competitiveness.
With global supply chains shifting and demand for alternative powertrains growing, Indian component manufacturers are well-positioned to capture new markets. The report predicts that exports to North America and Europe could surge fivefold by 2030. By leveraging innovation, quality improvements, and strategic collaborations, the Indian automotive components sector could achieve its ambition of becoming a global manufacturing hub by the end of the decade.
(autocarpro)
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