Auto Components




Robust Growth

Over the last decade, the automotive components industry has registered a CAGR of 14 percent and has scaled three times to USD 43.5 billion in 2016-17 while exports have grown at a CAGR of 14 percent to USD 10.9 billion.

Rising Indigenisation

The growth of global OEM sourcing from India & the increased indigenization of global OEMs is turning the country into a preferable designing and manufacturing base.

Increasing Turnover & Exports

The Indian auto-components industry is expected to register a turnover of USD 100 billion by 2020 backed by strong exports ranging between US$ 80-100 billion by 2026.

Contribution to GDP & Employment

The auto-components industry accounts for almost seven percent of India’s Gross Domestic Product (GDP) and employs as many as 19 million people.

Growing Automobile Industry

India is expected to become the 4th largest automobiles producer globally by 2020 after China, US & Japan. The auto components industry is also expected to become the 3rd largest in the world by 2025.

Electric Vehicles Push

The auto-components industry is expected to follow OEMs in the adoption of electric vehicle technologies. The global move towards electric vehicles will generate new opportunities for automotive suppliers. The mass conversion to electric vehicles may generate a USD 300 billion domestic market for EV batteries in India by 2030.

Product Segments


Production of Two Wheelers, Passenger Vehicles, Commercial Vehicles and Three Wheelers reached 23.15 million, 4.01 million, 0.89 million, and 1.02 million in 2017-18.

Passenger vehicles had the highest share of total auto component supplies to Original Equipment Manufacturers (OEMs) in 2016-17, followed by two-wheelers and Medium and Heavy Commercial Vehicles (M&HCV).


  • As per Automobile Component Manufacturers Association (ACMA) forecasts, automobile component exports from India are expected to reach USD 70-billion by 2026 from USD 10.9 billion in FY 17.
  • The Indian auto component industry aims to achieve USD 200 billion in revenues by 2026.
  • India’s exports of auto components increased at a CAGR of 9.9 percent, during FY 09-17, with the value of auto component exports increasing from USD 5.1 billion in FY 09 to USD 10.9 billion in FY17.
  • Europe accounted for a volume share of 35 percent during FY 17 in Indian auto component exports followed by Asia and North America with 27 and 26 percent respectively in the same year.

Export Market Potential

  • Exports will account for as much as 26 percent of the market by 2021.
  • Both domestic & export markets are almost similar in terms of potential share by different product types. For example, Engine & Exhaust components, along with Body & Structural parts, are expected to make up 50 percent potential domestic sales as well as exports in 2020
  • Transmission, Steering components, Electronics & Electrical parts are likely to be the other key products.