Trade Analytics
Auto Components
The turnover of India auto components sector is expected to reach US$ 115 billion by FY21.

Indian Auto Components Industry Analysis

Latest update: February, 2018

  • The domestic market is expected to account for 71 per cent of total sales by 2021 with a total market size of US$115 billion.
  • Over the last decade, the automotive components industry has scaled three times to US$ 39 billion in 2015-16 while exports have grown ever faster to US$10.8 billion.
  • The growth of global OEM sourcing from India & the increased indigenisation of global OEMs is turning the country into a preferable designing and manufacturing base.
  • The Indian auto-components industry is expected to register a turnover of US$ 100 billion by 2020 backed by strong exports ranging between US$ 80- US$ 100 billion by 2026.

Note: OEM - Original Equipment Manufacturer
Source: ACMA, Make in India

  • Exports will account for as much as 26 per cent of the market by 2021.
  • The auto-components industry accounts for almost seven per cent of India’s Gross Domestic Product (GDP) and employs as many as 19 million people.
  • 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.
  • In 2016, India overtook Japan to become the 2nd largest producer of steel in the world and among the lowest-cost ones as well.


Source: ACMA, Make in India



Last Updated: February, 2018

The Indian auto-components market contributes almost seven per cent to India’s GDP and employs as many as 19 million people. The auto components sector has been observing robust growth, and turnover is anticipated to reach US$ 200 billion by FY26 from US$ 43.5 billion in FY17. India's exports of auto components could account for as much as 26 per cent of the market by 2021. Growth of the domestic auto components industry is expected to reach 9-11 per cent in FY18 on the back of high growth expectation in domestic passenger vehicles (PV) and two-wheelers (2W) segments.^

Favourable government policies such as Auto Policy 2002, Automotive Mission Plan 2016-2026, National Automotive Testing and R&D Infrastructure Projects (NATRiPs), have helped the Indian auto components industry achieve considerable growth.

India is emerging as global hub for auto component sourcing. A cost-effective manufacturing base keeps costs lower by 10-25 per cent relative to operations in Europe and Latin America. Relative to competitors, India is geographically closer to key automotive markets like the Middle East and Europe. Global auto component players are increasingly adopting a dual-shore manufacturing model, using overseas facilities to manufacture few types of components and Indian facilities to manufacture the others.

Investments and expansions in the Indian Auto component sector-

  • Auto components manufacturer Spark Minda has inaugurated a technical centre which will nurture innovation and help the company move towards electrified mobility solutions.
  • Global automotive seating leader Adient is planning to open India’s largest-ever auto seating prototyping and testing facility in Pune by 2018.
  • Friction materials maker ASK Automotive has signed an agreement with Fras-le of Brazil to set up a joint venture of a brake pads and linings facility for commercial vehicles in Haryana at an investment of over US$ 15.6 million.
  • Magna International, Canada's giant auto parts supplier plans to open 3 new plants in India by 2019.
  • Automotive Solutions supplier Uno Minda Group is expanding its manufacturing capacity in Gujarat with an investment of US$ 91.87 million.
  • Schaeffler India, the Indian arm of Germany’s automotive and industrial parts maker, is planning to invest Rs 300 crore (US$ 46.66 million) per annum over FY18-19.
  • Major auto component firms such as Krishna Group, Minda Industries, Lumax Industries, Subros Ltd, etc are planning to invest over US$ 233.31 million over the next 2-3 years.
  • Exhaust system and ride control major, Tenneco Automotive India is going to set up a greenfield facility in Gujarat by investing US$ 6-8 million in different phases.
Sectoral Presentation (February, 2018)

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