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 auto comp industry to triple to $200 billion by 2030

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)

Related Stories

Electrical & Electronics
IIT Bombay partners with ABB India to set up electrical machines and drives lab

IIT Bombay partners with ABB India to set up electrical machines and drives lab

The teaching lab will feature energy-efficient, mechanically coupled electrical machine sets, variable frequency drives (VFDs), and programmable logic controllers (PLCs), focusing on delivering prac..

Read more
Auto & Auto Components
Škoda Auto Volkswagen India plays a vital role in ethical sourcing of Indian coffee

Škoda Auto Volkswagen India plays a vital role in ethical sourcing of Indian coffee

The byproduct, coffee bean husk, is used as a tanning agent for leather seats in Škoda Kodiaq and Octavia models, supporting the circular economy.

Read more
Test & Measuring Instruments
Importance of preventative maintenance in industrial settings

Importance of preventative maintenance in industrial settings

To enhance the effectiveness of preventative maintenance, industrial facilities are increasingly turning to advanced technologies such as thermography.

Read more

Related Products

Tata Motors unveils facilities for development of Hydrogen propulsion tech

AUTO COMPONENTS & ACCESSORIES

Tata Motors, India?s largest automobile company, unveiled two state-of-the-art & new-age R&D facilities for meeting its mission of offering sustainable mobility solutions. The unveilings constitute of Read more

Request a Quote

Tata Motors plans petrol powertrain for Harrier and Safari SUVs

AUTO COMPONENTS & ACCESSORIES

Tata Motors is in the process of developing a new petrol powertrain for its premium sports utility vehicles, the Harrier and Safari, as confirmed by a senior company official. Currently, these models Read more

Request a Quote

Electric Vehicle Charger

AUTO COMPONENTS & ACCESSORIES

RRT Electro is engaged in manufacturing of customized Power Electronic Products over two decades having capability to Design, Develop, Prototyping, Regulatory Compliance testing & Certification, Manuf Read more

Request a Quote

Hi There!

Now get regular updates from IPF Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Industrial News on Whatsapp! Enjoy

+91 84228 74016

Reach out to us

Call us at +91 8108603000 or

Schedule a Call Back