The auto components sector in India has emerged as a critical pillar of the country's manufacturing landscape, contributing significantly to its economic growth and industrial development. With a robust automotive industry and a growing demand for vehicles both domestically and globally, the sector has the potential to emerge as a global manufacturing hub and contribute significantly to the global value chain.
The industry has entered a new phase in terms of global exposure and technology adoption. It is now placing greater emphasis on research and development to foster the creation of intellectual property in India. The Indian auto component industry is actively embracing the transition toward electric vehicles and other alternate fuel technologies.
India is emerging as a global hub for auto component sourcing, and the industry exports over 25% of its production annually. By FY28, the Indian auto industry aims to invest $7 Bn to boost the localisation of advanced components like electric motors and automatic transmissions by reducing imports and leveraging the ""China Plus One"" trend. In 2023, the auto component industry achieved a 5.8% reduction in imports over two years. The majority of the components sold to OEMs are engine components (26%), body/chassis/BIW (14%), suspension and braking (15%), drive transmission and steering (13%), and electricals & electronics (11%). Major exports are to Europe ($6.89 Bn), followed by North America ($6.19 Bn) and Asia ($5.15 Bn).
(Source: https://www.investindia.gov.in/sector/auto-components)