Auto Component Industry Surges To USD 21.2 Bn In Exports In FY24, Targets USD 100 Bn By 2030

(MENAFN- KNN India) New Delhi, Mar 27 (KNN) The Indian auto component industry is charting an ambitious course of expansion, with the Ministry of Commerce & Industry projecting export revenues to reach USD 100 billion by 2030.

This strategic vision positions the sector as a critical driver of economic growth and employment generation, aligning closely with the government's Make in India initiative.

In the current fiscal year (FY24), the sector has already demonstrated substantial momentum, achieving export revenues of USD 21.2 billion and maintaining a trade surplus of USD 300 million.

The industry contributes 2.3 percent to India's GDP and is expected to reach USD 30 billion in exports by 2026, reflecting a robust growth trajectory.

Geographical distribution of exports reveals a strategic global footprint. European markets lead with USD 6.89 billion in component exports, followed by North America at USD 6.19 billion and Asian markets at USD 5.15 billion.

Approximately 25 percent of annually produced components are exported, underscoring the sector's international competitiveness.

A significant USD 7 billion investment is earmarked to enhance localisation of advanced automotive components, including electric motors and automatic transmissions.

This strategic infusion is expected to generate additional employment opportunities, building upon the existing 1.5 million jobs already created by the sector. Notably, the industry has demonstrated resilience by reducing imports by 5.8 percent over two years.

The sector's financial landscape in FY24 reveals a turnover of Rs. 6.14 lakh crore (USD 74.1 billion), with domestic Original Equipment Manufacturers (OEM) supplies constituting 5 percent and exports contributing 18 percent.

Component composition reflects technological diversity, with engine parts representing the largest share at 26 percent, followed by suspension and braking systems (15 percent), body/chassis (14 percent), drive transmission and steering (13 percent), and electrical and electronic components (11 percent).

The Union government's strategic approach focuses on establishing India as a global automotive manufacturing hub.

By actively promoting investments and driving localisation efforts, the initiative aims to enhance economic growth, technological self-sufficiency, and international competitiveness in the automotive supply chain.

This comprehensive strategy underscores India's potential to emerge as a critical global player in automotive manufacturing, leveraging indigenous capabilities, technological innovation, and strategic investments to drive sustainable economic transformation.

(KNN Bureau)

MENAFN27032025000155011030ID1109365328