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- Indian auto component industry is expected to grow significantly over the next five years, till 2030.
Indian auto component industry is expected to grow significantly over the next five years, till 2030. India’s top policy think tank body NITI Aayog has envisioned the country’s automotive component industry to grow to $145 billion by the end of this decade. NITI Aayog has also envisioned the Indian auto component industry to increase its export volume three times by 2030, from $20 billion to $60 billion. In a report titled “Automotive Industry: Powering India’s Participation in Global Value Chains”, NITI Aayog has stated that despite the new challenges, the Indian automotive component industry has been witnessing opportunities as well, which would pave the way for positioning the country a key player in global automotive markets. The NITI Aayog report has outlined several strategic fiscal and non-fiscal interventions aimed at enhancing India’s global competitiveness in the automotive sector. These interventions are structured across four different categories of automotive components, based on their complexity and manufacturing maturity. These four categories are – Emerging & Complex, Conventional & Complex, Conventional & Simple and Emerging & Simple. Under the fiscal interventions, the think tank has suggested Opex (Operational Expenditure) support, skill development, R&D, IP transfer, and cluster development. While under the non-fiscal interventions, NITI Aayog suggests measures such as industry 4.0 adoption, international collaboration, simplifying regulatory processes, worker hour flexibility, and, supplier discovery. In 2023, global automobile production reached approximately 94 million units. While, the global automotive components market was valued at $2 trillion, with the export share reaching approximately $700 billion. India emerged as the fourth-largest global producer after China, the USA and Japan, with an annual production of nearly six million vehicles. The report has stated that the Indian automotive sector has gained a strong domestic and export market presence, particularly in the small car and utility vehicle segments. However, despite being the fourth-largest automobile producer globally, India has a modest share in the global automotive component trade, which amounts to approximately $20 billion, about three per cent. The bulk of global trade in automotive components is driven by engine components, drive transmission, and steering systems, but India’s share in these high-precision segments remains low at just two-four per cent. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 13 Apr 2025, 10:08 AM IST
Source: hindustantimes.com
