Advantage India
Robust
Demand
* Growing working population and expanding middle class are expected to remain key demand drivers.
* By 2025, 4 million of EVs could be sold each year and 10 million by 2030. The market is expected to reach US$ 206 billion by 2030.
* The Indian auto component industry is set to become the 3rd largest globally by 2025.
Export
Opportunities
*India is emerging as a global hub for auto component sourcing and the industry exports over 25% of its production annually.
*Auto component exports are expected to grow and reach US$ 30 billion in FY26.
*India has a competitive advantage in auto components categories such as shafts, bearings and fasteners due to large number of players. This factor is likely to result into higher exports in coming years.
Policy
Support
*100% FDI is allowed under the automatic route for auto components sector.
*Production Linked Incentive (PLI) schemes on automobile and auto components are expected to bring a capex of Rs. 74,850 crore (US$ 9.58 billion) in the next five years.
*The Bharat New Car Assessment Program (BNCAP) will not only strengthen the value chain of the auto component sector, but it wil also drive the manufacturing of cutting-edge components, encourage innovation, and foster global excellence.
Competitive
Advantage
*A cost-effective manufacturing base keeps costs lower by 10-25% relative to operations in Europe and Latin America.
*India is the 2nd largest steel producer globally, thus has a cost advantage.
*India is emerging as a global auto component sourcing hub due to its proximity to key automotive markets such as ASEAN, Europe, Japan and Korea.
Related News
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- Maharashtra
- Tamil Nadu
- National Capital Region(NCR)
- Gujarat
- Madhya Pradesh
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COMPONENTS OF QUALITY
India is emerging as the world's hub of choice when it comes to manufacturing quality auto components. The industry has over 600 manufacturers who exceed the world's most stringent quality standard.
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