Schedule a Call Back
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)
Related Stories
Auto & Auto Components
Suzuki and Toyota to start EV manufacturing in India by 2025
The new model will be built on an EV platform co-developed with Daihatsu, featuring a spacious interior and reliable battery power.
Read morePolicy Regulation
Six industries drive over half of India’s formal manufacturing GVA: NSO
In FY23, industries such as basic metals, chemical products, refined petroleum, motor vehicles, pharmaceuticals, and food products collectively contributed 52.6% to the manufacturing GVA.
Read moreRailways
Freight corridors fuel equitable economic growth across India: Study
The DFC network spans 2,843 kilometers across seven states, with the 1,337-km Eastern DFC fully operational from Ludhiana to Sonnagar, Bihar, and the 1,506-km Western DFC nearly complete, connecting..
Read moreRelated 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
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
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
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
