Exports of auto components from India see robust growth in last 2-3 years
According to industry experts, India's auto component industry can target $100 billion in exports
- NEW DELHI — Showcasing India’s growing role in the global supply chain,
exports of auto components have shown robust growth in the past couple of
years.
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- Also, major exports destinations for motorcycle parts are
Germany, Bangladesh, the US, the UK, the UAE, Brazil, Turkey, Sri Lanka and
others.
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- This highlights India's increasing global market presence
and reduced dependence on imports.
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- According to industry experts, India's auto component
industry can target $100 billion in exports, as global original equipment
manufacturers (OEMs) reassess their supply chains and manufacturing strategies,
presenting India with an optimal opportunity to establish itself as a top
global destination.
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- The auto component exports reached $21.2 billion in FY24,
marking a significant turnaround from a $2.5 billion deficit in FY19 to a $300
million surplus.
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- According to the latest report by Automotive Component
Manufacturers Association of India (ACMA) and Boston Consulting Group (BCG),
India can potentially add another $40-60 billion in incremental exports by
prioritising 11 product families, with focus on US and Europe markets.
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- Notably, capitalising on emerging EV and electronic value
chain through localisation today, India can look to tap into additional $15-20
billion exports in components such as battery management systems, telematics
units, instrument clusters and ABS.
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- Global OEMs are major customers of India's auto component
industry, accounting for 20-30 per cent of exports.
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- In the German market, which is predominantly influenced
by Eastern European suppliers, India emerges as a cost-effective alternative,
offering components at prices up to 15 per cent lower.
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- In the US market, which is current dominated by imports
from Mexico and China, Mexico offers components at 2-5 per cent lower prices
due to reduced logistics and tariff costs. Conversely, Chinese components are
20-25 per cent more expensive compared to India, largely because of additional
tariffs.
